Mergers and Acquisitions
Alignment of parties that share the same values and need each other to grow is where the magic exists in M & A. Selling your company or finding a strategic partner is a daunting thing to contemplate for any founder. It is a process that requires a careful runway of preparation to be certain the maximum value can be established for the business. Timing is everything, of course, but so too is organisation. Assets, Share Table, Taxation, Accounts, IP, Contracts. All elements of the business need to be perfectly ready in order to stage the most advantageous merger or sale.
- The process is as follows –
- Initial meeting to understand the business and the shareholders expectations.
- Rockbridge due diligence exploring readiness of company for sale or merger and potential target buyers and partners.
- Engagement letter signed between Rockbridge and client. Retainer begins.
- Work on building prospectus begins, including historical analysis, market overview, digital data, future potential analysis, financials.
- Launch to investors both internationally and in New Zealand.
- Audit initial expression of interest, NDAs signed, engage with potential buyers.
- Meetings with investors and client.
- Audit offers and negotiation.
- Proceed to Heads of Terms.
- Due Diligence and working alongside legal team to agree contracts between parties.
- Transaction and completion process.
This process can take anywhere between six and eighteen months. Ideally a client company will have all accounts and contractual arrangements up to date, helping the time frame to launch.
Rockbridge fees are based largely on the successful completion of the merger or sale with a Fundraise Fee of 5% being typically charged on the quantum up to NZ$10m and 2% to 4% on larger sums. A monthly retainer of $4000 is also charged, for six months, which is offset against the Fundraise Fee.
For further information contact: investment@rockbridgeinternational.com