M&A / Capital or business alliance support

M&A is one of the strategy options for considering entry into the African market.

Support on M&A / Capital Alliance

The purpose of M&A varies from company to company, such as utilization of sales channels, utilization of brands, utilization of production bases, etc.
On the other hand, it will take great time and require great energy to accomplish the above goals from zero.
Therefore, there is a strategy option that is “buying time” by M&A to achieve those objectives.
Of course, it’s not certain that we can take a short cut all periods in which the business of the company has been continuing.
As well as raising the level of invested company to your expected level, you need to raise the knowledge level of own talent.
Therefore, it’s required to make a plan taking that period and effort into account.
And Africa supports not only Pre stage of M&A, but also the post stage (PMI), as below.

II Create long list of candidates for investment

We hear in detail the contents of your business and investment objective and list the local African companies as candidates.

II Research of each company (Field survey)

Speaking of companies in Africa, it’s hard to obtain the accurate their business / financial data.
And Africa investing each company’s information on supply chain such as suppliers, store management, the local reputation, etc.
If required, we will obtain any information about financial / credibility data under cooperation with local banks(※).
※ Please note this is not to guarantee.

II Transfer intention to each company・Set the meeting・Organize and draft the basic agreement

We preliminarily coordinate with you regarding disclosure contents and communicate your intention to the investment candidate.
At that time, we carefully support the process of acquiring appointments at the site and implementing an interview.
Additionally, we can draft the contract documents towards the signing of the basic agreement under cooperation with the experts in African legal affairs.

II Documents disclosure request・Due Diligence

We create the list for information disclosure request to the candidate, and based on it, gather information.
Based on that information, we carry out business and financial due diligence.
And Africa has consultants with abundant experience in business and finance due diligence.

II Corporate value evaluation・Acquisition price calculation

Based on the due diligence results, we will conduct corporate value evaluation in kind of way.
And Africa has consultants with abundant experience of supporting cross-border M&A at major global consulting firm.

II Organize the contents of final agreement

We list up all the issues of final agreement in tabular form, and organize your company’s policy in each issue under hearing from you.

II Support for condition negotiation at the site (support until final agreement is concluded)

Based on the table above, we negotiate with the investee candidate locally.
At that time, since it is necessary to have a meeting with you in the end, we implement the foundation for smooth final agreement.

II Draft the final agreement

We preliminarily confirmed each issue in the final contract document with you, and draft the contract under cooperation with experts who are in charge of African legal affairs.

Support on Business Alliance

Apart from the above, we also support business alliances that do not include capital alliances.
In that case, there is no big difference from the content of support in M&A, and we progress each step carefully.
※Basically, the processes of “Due diligence” and “Corporate value evaluation・Acquisition price calculation” are not carried out.