Services

We offer result driven M&A advisory for transactions with Mittelstand companies:

Sell side

Advisory to sellers on sale of a company or business, e.g. as part of a succession plan

Situation

  • You are planning to sell your company or a business unit e.g. as part of your succession plan (exit). Possible buyer groups are strategic buyers, financial investors/family offices or the management (MBO/MBI)
  • You are looking for an investor/co-shareholder that supports you e.g. in your growth and expansion plans or in the restructuring of the existing shareholder structure (partial exit)
  • Your goals are:
    • Maximizing value and price
    • Flawless and silent transaction process without “surprises”
    • Selling your company to the “right” buyer who continues to operate the business in line with your principles (or finding a co-shareholder that “fits” and fully supports your strategy)

What we do

As a specialist for personal M&A advise for owners and investors of owner-managed and family-owned companies we bring your transaction to a success. REDHILL Corporate Finance develops a tailor-made procedure and takes over the full coordination and responsibility for the process. This includes e.g. the following work steps:

  • Professional preparation
    • Development of a sales strategy, equity story and information memorandum
    • Buyers research: Development of a long and short list of potential buyers
  • Execution - creation of a competitive auction process
    • Personal approach of potential buyers
    • Solicitation of indicative offers (“letter of interest”)
    • Preparation and coordination of management presentation and due diligence
    • Solicitation of "letter of intent" or "term sheet"
    • Management of SPA negotiations
  • Signing and closing

How we bring value

  • Experience factor
    • Personal, independent M&A advise through the founder with a maximum of experience in the sale of Mittelstand companies
    • Deep understanding for the special psychology and specific requirements for a small and mid-cap transactions
  • Maximization of purchase price and sale conditions
    • High expertise in developing consistent “equity stories”
    • Extensive buyer research based on industry reach and international network
    • High expertise in structuring efficient, competitive auction processes
  • Process and transaction reliability
    • Excellent preparation of all steps
    • High efficiency through detailed, transaction oriented process management
    • Specialist for running processes with a limited number of buyers (if appropriate)

Buy Side

Advisory to buyers on the acquisition of small and middle-market companies

Situation

  • You are planning growth through acquisitions and are looking for professional M&A support in:
    • Developing an acquisition strategy
    • Identification of suitable targets in the Mittelstand
    • Managing the acquisition process
  • You would like to acquire a specific company and are looking for an entrepreneurial adviser helping you to successfully close the transaction through:
    • Managing the acquisition process
    • Positioning yourself via the seller in the best possible way
    • Finding an acquisition financing

What we do

REDHILL Corporate Finance brings acquisitions in the small and mid-cap market to success. We fully manage your acquisition process including the following work steps:

  • Target identification
    • Development of an acquisition strategy
    • Comprehensive, structured market research
    • Identification and prioritization of potential targets, development of „Long List“ and approved „Short List“
  • Approach
    • Development of a communication plan and individual strategy to approach the candidates
    • Initiation of contact with potential targets
    • Assessment of “strategic fit” and potential synergies
    • Target valuation/assessment of appropriate price range
  • Due Diligence, negotiations
    • Coordination of due diligence and transaction team
    • Drafting and negotiation of offers ("letter of interest", "letter of intent", "term sheet", "final offer", etc.)
  • Intensive internal support
    • Documentation of all process steps
    • Preparation of documents for the internal decision-making process
    • Assisting developing and executing of appropriate financing strategies (if relevant)
      • Identification of financing sources
      • Development of necessary documentation
      • Negotiation of financing terms

How we bring value

  • Professional screening of the market for acquisition opportunities. Excellent network to Mittelstand companies and owner-run/family-owned businesses
  • Experience factor. Personal independent M&A advise through the founder with a maximum of experience in the acquisition of Mittelstand companies
    • Proven “door opener" when approaching and communicating with potential targets
    • In-depth understanding of the psychology of the German “Mittelstand“
    • Best possible positioning of the buyer vis-a-vis the sellers
    • Handling of all details to navigate the transaction to a successful closing
  • Professional valuation. Long-term experience and creativity to design the optimal deal structure and in negotiation of purchase price and major contract terms
  • Efficient and transaction oriented process management
  • If required, extensive network to banks for acquisition financing in the small and middle-market

MBO/MBI

Advisory to management in MBO/MBI situations with full support in opportunity analysis, valuation, transaction structuring, fundraising and deal negotiation

Situation

  • You are the manager (management team) of a small or medium-sized company (or of a business unit/portfolio company of large corporation) and would like to acquire the business
  • You are an external manager and would like to acquire a specific company (that you have already identified)
  • You need support in structuring and managing the MBO/MBI process, e.g. developing a financing concept, arrangement of equity/ debt and negotiating with the current owners, investors and banks

What we do

The team of REDHILL Corporate Finance has long-term experience advising managers in MBO/MBI situations. We support you with:

  • Assessment of realizability, valuation and development of a tailor-made transaction and financing concept
  • Identification of suitable partners to finance the MBO/MBI with debt and equity
    • Financial investors, family offices
    • Banks focused on small and mid-sized businesses
    • Public subsidies and grants
  • Preparation of a professional documentation including business plan as a basis for all negotiations with investors and banks
  • Coordination and management of all negotiations with the current owners, investors and banks

How we bring value

  • Experience factor. Long term experience in developing and realizing MBO/MBI concepts
  • Extensive expertise in finding the "right" investor with the best fit for the management
    • Deep knowledge of the financial community and excellent access to the relevant investors MBOs/MBIs in the small and mid-cap segment, in particular private equity firms, family offices and private investors
    • Broad experience in assessing the best partner through a limited, competitive process
  • Extensive network to banks for acquisition financing in the small and middle-market
  • Comprehensive support in all details
    • Experience and sensibility in negotiations with the current owners/ sellers
    • Competitive process amongst bank to optimize financing
    • Deep experience in negotiating all aspects of management terms and shareholder agreement with professional investors

Distressed M&A

Advisory in selling or buying companies in turnaround or special situations

Situation

M&A in restructuring situations is extremely complex. Typically, the situation varies compared to a sale under less restrained conditions e.g. with regard to:

  • Shorter time frame
  • Higher complexity as different stakeholders are involved
  • Limited amount of interested buyers that have the ability to act and close a transaction

What we do

REDHILL Corporate Finance is an experienced advisors in distressed M&A situations.The focus in these special situations is on:

  • Straight forward analysis of the situation and evaluation of best possible sales strategy
  • Development of a comprehensive business plan which fully reflects the existing potential of the business
  • Focus on acting quick and pragmatically
  • Clear communication and negotiation

How we bring value

  • Experience factor. Long term M&A experience in special situations and distressed transactions
  • High speed of process: we move fast to preserve the value of the business
  • Extensive experience in identifying and focusing on buyers that are capable of acting:
    • Broad and international network to identify suitable buyers
    • Deep network financial investors focused on turnaround investments and special situations
  • High competency in developing realizable solutions that meet the constraints of the situation
  • Excellent reputation allowing credible communication and negotiation with all parties involved

Debt Advisory

Advise in raising debt or equity, e.g. to finance an acquisition or an MBO/MBI

Situation

You are looking for a tailor-made debt financing for:

  • Acquisition financing (as part of our buy side advisory services)
  • Financing of an MBO/MBI

You are looking for equity financing by a family office, a private investor or private equity firm to support you with:

  • Acquisition or growth financing
  • Financing of an MBO/MBI
  • Restructuring the existing shareholder base

What we do

REDHILL Corporate Finance is a fully independent advisor and supports you with:

  • Analysis of existing financial structure and development of a tailor-made financing solution
  • Preparation of necessary documents to approach banks and/ or investors
  • Identification off suitable debt providers or equity partners
  • Negotiation of term sheets, equity and debt documentation

How we bring value

  • We find the right partner:
    • Established and extensive network to banks and other financial institutions in the German-speaking region
    • Excellent access to family offices, private investors and private equity houses
  • We bring transparency and ensure best possible financing conditions through independent advise and competition