Services

Some business owners may have already identified a potential buyer or equity partner and are therefore not looking to engage a Business broker. However, they are looking for support to help guide and facilitate the deal.

The use of an experienced facilitator can ensure the process is conducted fairly and efficiently, thus reducing the risk of deal breakers.

Transaction and facilitation support can reduce time and cost, by providing specific process, procedures and documentation to get the outcome both parties are looking for. Typically this is done for a flat fee or an hourly rate.

Typically people engage APS for this service when there are:

• Confidentiality concerns
• Change in or new employee shareholdings
• Management buyout
• Retiring party
• Related party and associated business buyouts

APS has a proven process to assist clients in the sale, acquisition or merger process, to ensure a seamless transition. We also provide assistance in the due diligence process.
Often this is the final hurdle before a sale becomes unconditional. It is critically important to verify that what is represented in the beginning is going to be delivered at settlement. Most sales will have purchase price adjustment provisions and APS consultants can assist with the measurement of appropriate price variations.

Whether purchasing directly from the business owner or via a broker, engage an APS consultant to ensure you know what you are buying.

Prospective buyers can leverage off our in-depth knowledge of financier’s lending requirements, extensive banking networks and finance brokers, in order to receive a competitive funding package.

Contact us with a scenario and we can provide you with a panel of specialist bankers and finance brokers you may wish to contact, to arrange suitable funding.

Mergers and acquisitions can be a complex process, due to often competing interests or relative unequal bargaining power of the parties.
Mergers are generally completed via purchase or pooling of interests’ methods.
There are some differences between these two accounting methods which are discussed below.

The asset and liabilities of the merged company are presented at their market values as on the date of acquisition, in order to ensure that the resulting values of the accounting process are able to reflect the market values. This refers to the value, which was recorded before the final settlement of the acquisition deal at the time of bargaining.
In this process, the total liability of the joint company equals the sum of individual liabilities of the two separate firms. The purchase price then determines the amount by which the acquiring firm’s equity is going to increase.

In this method, transactions are considered as exchange of equity securities. Here, assets and liabilities of the two firms are combined according to their book value on the acquisition date.

The total asset value of the joint company equals the sum of assets of the separate firms. In this case, the accounting income is found to be higher than in the purchase method, as the depreciation in the pooling method is calculated based on the historical book value of assets

APS can discuss the best way to discuss a merger and work from initial discussion, documentation through to settlement. APS can also assess the viability of a merger and ensure that some independent assessment and merits of the deal are completed, with a professional and arms length facilitation.