M&A (Buyside): Spanish Translation Services Provider
M&A / Strategic Advisory
Client: Spain-based provider of advanced linguistic services specializing in training and multi-lingual translation and communication (“Client”).
The Problem: Client had established US commercial office but organic growth was not meeting targets. Client needed access to new clients and greater growth opportunities.
The Solution: Serve as the Client’s strategic advisor in purchasing a New Jersey-based language translation company with an existing and established local presence and attractive client base (“Target”).
Key Solutions / Deal Highlights
The Problem: Client had established US commercial office but organic growth was not meeting targets. Client needed access to new clients and greater growth opportunities.
The Solution: Serve as the Client’s strategic advisor in purchasing a New Jersey-based language translation company with an existing and established local presence and attractive client base (“Target”).
Key Solutions / Deal Highlights
- Advised Client on strategic issues relating to: i) the choice of partner; ii) the creation, structuring and closing process; iii) specific structuring and tactical issues such as compensation schemes, earn-outs, EBITDA targets, equity structures, business plan creation, capital budgeting issues; and iv) ongoing operations, management, financial reporting, governance and oversight of joint venture
- Conducted onsite, full-scale due diligence on Target, including legal, operational and financial
- Constructed and structured legal, financial and operational framework for negotiations and deal structure
- Negotiated LOI/Memorandum of Understanding between the parties which outlined the salient terms of the overall partnership
- Prepared Board presentation materials for Client to gain corporate headquarters approval for investment and execution and engaged in personal discussions with senior decision makers for go/no-go opinions and advice
- Prepared presentation materials for Spanish debt provider financing operation
- Created final deal structure, and drafted final documents and agreements and negotiated terms with target, advising Client on strategy and options
- Conducted extensive financial and operational “cleanup” of target books and operational processes, including asset verification and valuations; income statement account rationalization and reorganization; employee payroll records; credit accounts outstanding, rights and responsibilities; debt pay down processes