Deals
VP Media
Buy side
An important initial step as part of a long term value creation strategy
Client
Investor
Sector
Communication & Technology
01
Client situtation
DCF acted for a private investor looking for a long-term play. Our brief started with kicking the tires of a pre-identified opportunity – all the way up to closing the transaction. Critical to the exercise was the idea to build value from a strong basis. This value creation was facilitated through the client’s strong capabilities in telecom, voice & image technologies and his affinity with buy-and-build.
02
DCF’s role
We assisted and led the process end-to-end. This included an in depth data driven financial due diligence aimed at weighing onto subsequent price negotiations. This exercise served as a basis for structuring and financing. Beyond this DCF coordinated buy side stakeholders through contracting up to closing of the transaction. From the beginning a clear process included weekly update calls to keep all involved in the loop & ready to move forward.
Outcome
The mandate resulted in a successful buy-out of VP Media Solutions. To a large part, the outcome was driven by our approach to M&A:
- A data-driven approach to negotiation meant buyer & seller got along well throughout the process. This means that today, 2 out of the 3 selling shareholders are still part of the business – a great win for our client
- The choice for a locked-box mechanism of price determination meant the price was unaffected when the deal took longer to complete, for reasons out of control for the buyer
- For a project business, getting cut-off dates right on work in progress means getting certainty as a buyer. DCF’s in-depth work instilled trust in the buyer through a better understanding, apart from its impact on getting the price right
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