Some Mergers and Acquisitions Case Studies At-A-Glance
Company Snapshot: $450 million retail company recently acquired by a private equity firm.
In this engagement, the acquired company had significant lease commitments exceeding $100 million. Using current real estate conditions to determine fair value of the leases in today’s market and working with the company’s real estate experts, Blythe Global assisted the company in calculating a $15 million value which will benefit the company’s future operating results by approximately $3 million each year over the next five years.
Company Snapshot: Small private manufacturing company in the process of being acquired by a competitor.
Because the seller lacked the expertise and infrastructure to respond to the buyer’s requests, they engaged Blythe Global to handle all due diligence requests and to act as the first line of defense for any follow-up questions from the buyer’s accounting, due diligence and legal teams. By presenting such an experienced “face” to the buyer, Blythe Global helped facilitate a successful close of sale on time and at the requested price – turning a potentially damaging situation into a positive outcome.
Company Snapshot: West Coast public IT company seeking to acquire an East Coast supplier.
In this case, the buyer lacked the resources to go to the seller’s site to assess the overall accuracy of underlying assumptions or to verify complex accounting positions. Blythe Global filled the gap by providing on-site end-to-end due diligence services as well as satisfying all SEC reporting requirements. Blythe Global also supplied integration services to facilitate consolidation of processes. By providing such a broad scope of services, Blythe Global presented a single focal point for all acquisition issues – resulting in minimal disruptions to both companies’ businesses.
Company Snapshot: $20 million private transportation company acquired a competitor of the same size.
Because the target company’s files were not sufficiently up-to-date, the buyer was unable to understand fully the accounting implications of the seller’s most recent transactions and their effect on fair value. After reviewing and organizing the seller’s files, Blythe Global created supporting documentation that illustrated the short- and long-term effects of all recent transactions on debt, cash flow, profitability, etc. These analyses enabled the buyer’s external audit team to conduct an efficient audit and freed the buyer to focus on running the business. Blythe Global’s efforts also helped streamline the consolidation of files and processes – enabling the acquisition to get off to a fast and successful start.
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