Selling Support Is What I Need.
Large CMO wanted to sell one of his sites located in Europe. This site generated €30M sales.
In order to prepare the relevant information and address the key issues in advance of the transaction process for the M&A banker to attract key buyers, the CMO mandated Larka to manage commercial & strategic, operational and technical VDD.
Financial & Tax, IT and legal VDD were handled by another consulting firm.
- US CMO
- Over 450 employees
- Above 150mn USD of revenue
Larka's Scope Of Intervention
Larka assisted the management team with the following:
- Commercial & Strategic VDD
- Market and competitive environment
- CMO site overview – sales, headcount, technologies, customers
- CMO site key asset and competitive advantages
- CMO site strategic positioning
- Buy and build strategy
- Technical VDD
- Manufacturing capabilities and process optimisation
- Quality and HSE assessment
- Identification of key technologies and capabilities
- Operational VDD
- Site organisation structure and resources allocation
- Identification of key human resources, know-how and expertise
- Customer contracts analysis and preparation of post-acquisition terms
- Site separation issues, solutions and financial impact
CMO's site was a high quality level site, with a strong added value technological capabilities recognized on the market, offering attractive growth possibilities. CMO also benefited from a high customer satisfaction. However, some manufacturing agreements included a term that allowed the client to terminate the contract in case of a site acquisition by a new company. We informed the sellers about this specific point that contrasted the high customer satisfaction.
Larka commercial & strategic VDD highlighted all the creation value levers the site could offer to potential buyers, with well structured business plan and coherent figures.
The site was not dependent on the CMO group, and almost worked as a stand alone site, so separation issues were not considered as critical. Also Larka had identified the main potential issues and addressed all of them with relevant and cost control solutions.
Larka worked closely with the M&A firm in charge of the transaction process, and answered any question that could help the potential buyers. Transaction was successful, with a x9 EBITDA multiple.