The following services are offered
by SDR, drawing on its partnership network as required.
Evaluation of local markets and industry
SDR conducts market research in Australia and New Zealand
to assist our clients to evaluate the local industry from
the perspective of their particular products or services.
This information is invaluable to determine strategies to
enter the local markets. Specific attention is paid to:
Status of the
industry
• Levels of activity
• Volumes traded
• Value of the market
• Market share
• Major players in the market
• Regulatory environment
• Scope for expansion and market growth
Facilitating partnerships
Where our clients desire a partnership with a local concern,
SDR can assist with the following services.
• Identify suitable
partners
• Research the position and market-position of potential
partners
• Make the initial approaches
• Lead negotiations
• Assist in formulating agreements
• Draw up implementation plans
In certain circumstances,
we can also act as the local representative for our client
in their relationship with the new partner.
Establishing new local companies
SDR can assist clients wishing to establish a new company
or office in Australasia with the following services.
Assistance
with legal and registration procedures
• Identification and procurement of suitable premises
• Identification and recruitment of management staff
• Identification and hiring of personnel
• Finance arrangements
• Preparation of strategic plans
• Drawing up a business plan
Facilitating mergers and acquisitions
One of our key activities is to assist clients who wish
to establish themselves in Australasia through merging
with, or acquiring local concerns. We provide a range of
services related to mergers and acquisitions.
Identifying targets for mergers & acquisitions
SDR will identify suitable target companies in New Zealand
or Australia. Preliminary research will be conducted on
these companies, assessing their standing, market share,
the health their operations and their range of services
or products. We will also make the initial contact with
the target companies to assess their interest in a merger
or acquisition.
Conducting negotiations
Once a potential target for a merger or acquisition has
been identified, SDR can facilitate or lead the negotiations
between our client and the target company. Where required,
we can act as the client’s representative in these
negotiations.
This is often a traumatic period for the seller and in
our experience a great deal of personal attention, empathy
and support may be required. Given our international background,
we are also very aware of cultural differences and sensitivities
and the potential for misunderstanding and mistrust that
exist. Emphasis is therefore placed on building relationships
and creating mutual understanding – to make the negotiation
process as smooth and efficient as possible.
Company valuation and financial modelling
Determining the value of a target company is one of the
key activities for any M&A transaction. SDR can assist
clients to do this efficiently and to develop the associated
financial models to calculate the return on a proposed
investment or transaction, the net present value and payback
period. The value inherent to real options that the target
company can execute is also taken into account.
We will conduct analyses to determine the sensitivity of
the financial models to changes in key parameters or assumptions
and the effect of different growth projections. If required,
SDR can assist clients to estimate the local industry average
cost of capital related to their specific activities or
business.
Due diligence
Conducting due diligence studies on the financial, trading
and legal aspects of a target company is an essential part
of a merger or acquisition process. SDR assists in having
these studies performed and analysing them for their potential
impact on the proposed transaction.
Financing the deal
Through our contacts with the local financial institutions
and venture capitalists, SDR can assist clients in negotiations
to obtain debt-funding of transactions.
The impact of debt will be built into the financial models
to test the continued viability of a proposed transaction
and to determine optimum gearing levels.
Implementation
When agreement is reached on a transaction, SDR will assist
clients in a number of ways, including:
• Preparing purchase agreements.
• Drawing up the contract.
• Preparing documentation to ensure legal compliance.
• Company registration
• Preparing a detailed implementation plan to manage the
transition and
to ensure that all the necessary action
points are attended to.
Post transaction support
Once a new venture has been established, or a company acquired,
there is often a need for significant further levels of
support. SDR can assist with the following services.
• Preparation
of strategic plans
• Drawing up a business plan
• Locate suitable management staff and personnel.
In certain instances our clients have requested us to
have board representation during the transitional and implementation
phases, to help ensure continuity and the success of the
venture. |