Acquisition due diligence as part of a takeover bid for a listed group

Sector of activity: Tourism/Hotels
Size (sales in €bn): 1.5

Context

  • Plan by two investment funds which are shareholders of the target (20% stake between them) to become the majority shareholder in unison
  • The target being listed on the Paris Stock Exchange, the proposed acquisition took the form of a takeover bid

Our mission

Our mission was structured in three phases over a period of approximately 9 months.

First phase:

  • Identification of key points on the basis of analysis of publicly available information (reference document and presentations to analysts)
  • Issuance of a preliminary report which enabled our client’s investment committee to take the decision to continue the operation

Second phase:

  • In-depth analysis of due diligence subjects on the basis of detailed information (particularly sales, earnings and key indicators per site and per zone)

Third phase:

  • Analysis of recent earnings (current trading)
  • Support for our client in dealings with banks during the financing process as well as syndication of equity

Results

  • Input which helped trigger the takeover bid, while ensuring a high degree of confidentiality.

Key success factors

  • Familiarity with the sector
  • Ability to support our customers on a lengthy project (9 months) with “stop and go” phases of varying intensity while protecting confidentiality
  • Constructive interaction and a relationship of trust with the target’s management
  • Extensive business expertise concerning acquisition due diligence, particularly in the context of a takeover process