ABCO M & A Division

There are two types of intermediaries when businesses change hands - business brokers and M&A specialists. ABCO M&A services have been implemented to bridge the gap between investment banks and general business brokerage firms. The accumulated level of education, training and experience of the M&A specialist is a very distinguishing factor. Business brokers usually handle small businesses while M&A specialists generally handle the larger and middle market businesses. While business brokers usually charge a percentage of the purchase price, (around 10 percent) M&A specialists usually charge a flat fee or an hourly rate, with a portion paid in advance. Hiring an M&A intermediary is strongly suggested by most experts.

An M&A specialist will usually be brought in on a transaction when the gross revenues of a company have consistently (for 3 or more years) been in excess of R1 million and the net profit of the company, consistently in excess of R300, 000.

Our M&A specialists represent companies over a broad range of industries and have developed a complete program to market our clients’ businesses. For each, they carry out a thorough market and industry analysis which includes a comprehensive valuation and a unique and exclusive marketing program.

We have a comprehensive training program that provides staff with the knowledge and skills necessary to represent clients, regardless of the size of the transaction. If you are looking to merge or acquire, divest, or list your company, we can guide you through the necessary documentation, due diligence and negotiations and get you the best possible price in any transaction. Our M&A professionals will offer you outstanding service through all phases of the transaction.

Once the decision is made to buy or sell, the search for the right candidate is begun. The merger or acquisition, planned by a carefully chosen team of internal and external  specialists working with line management, ensures the best chance of success.

After the planning process has identified the acquisition candidate and the initial valuation of the target on the basis of the economic forecast, the analysis phase takes this information and uses it to evaluate legal, tax accounting, and financing considerations of alternative approaches to generate preferred acquisition structures, currency mode and trade-off value. This analysis also provides information for formulating the acquisition strategies to be pursued.

This is done through screening prospective buyers before disclosing a business for sale to them. They must also provide evidence to show that they have the means to buy and operate a company successfully.  As confidentiality is of paramount importance, no information about a company for sale is disclosed and all prospective Buyers are required to sign a non-disclosure agreement to that effect.

Most transactions require negotiation of the final terms of the agreement between parties. The person doing this should have good negotiating skills, an excellent familiarity with the subject matter, and experience in negotiating transactions

The acquisition is finally accomplished by the delivery and filing of documents at a closing meeting held soon after the shareholder approvals. Our M&A specialists are trained to ensure that all goes smoothly at the closing and that it is over quickly.

The preparation, negotiations, due diligence, etc, in a merger or acquisition involve financial, legal and human implications. We at ABCO complement our services by working closely with the top Investment Banks in the country.

• Real property
• Agreements
• Supplier and customer information
• Compliance with law and information
• Corporate records
• Financial and tax information
• Indebtedness
• Employment and labor matters
• Any other documents pertinent to the functioning of the business.

We assist clients in preparing their company for sale, transfer company ownership and are also very active in helping to ensure the smooth transition of management and continuity of operations after the merger.