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Rolf Popp Pro Consult

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22.09.2014

IN LINE WITH THE TREND: RPPC Pro Consult intensifies its consulting services in Company Fusion

Complex requirements have to be met in order to save the sustainability and competitiveness of enterprises. To achieve this, the ‘strategic and modern’ company purchase goes in line with the company fusion.

 

The dramatic acquisition of the Canadian company “Tim Hortons” (coffee) by “Burger King” (fast food) shows that modern acquisitions have to realize more strategic targets than only the classical growth, synergy or market entry. Burger King combined the company purchase with a company fusion and uses some additional advantages without losing sight of the principal reasons for its acquisition.

 

Decision making during a Company Acquisition: Traditional Chances & Risks versus Advantages 2.0?

 

RPPC Pro Consult supports small and mid-sized company fusions from South Tirol to Hamburg and from Cologne to Vienna.

 

RPPC Pro Consult is a specialist in professional company fusions of small and mid-sized companies. A deep and long-term experience, passion as well as a comprehensive process know-how are the basis of our consulting services combined with the awareness for values, tradition and quality.

At first, let’s have a look at the typical features of a company acquisition and let's see the gist.

 

The classical company purchase at first:

 

• Company growth beyond the operational possibilities
• New business segments in close business areas
• Synergies (i.e. product, market, technology, sales etc.)
• Competences
• Infrastructure, logistics & maintenance
• Location
• New markets & market entries
• Internationality
• Etc.

 

It’s necessary and very important to check the possible risks in a diligent way. Anyway, whether being a big player or a mid-sized company, company acquisition has influence on the further development and results. Typical risks like the business continuation, investment need, finance structure, environment, market development and development of the competition are usually considered by the professional and neutral M&A consulting, mergers and acquisitions, so that – instead of all individual existing factors - the company purchase is to come to success.

It’s necessary to bear possible RISKS in mind. They should be considered carefully.

 

Now the combination of company acquisition and fusion:

 

• Straight and more efficient management from one hand
• Use of the best advantages of each partner (i.e. location, taxes, etc.)
• Optimized rationalization
• Change of image and positioning
• Flexibility of brandings (trademark, products etc.)

 

The combination of company purchase and fusion saves almost always the advantages and targets of the – so called – traditional company acquisition. It is just a model enlargement of the strategic options based on individual objectives. In practice, the most important differences can be found in the implementation. Therefore, the packages of strategies and measures in the search for candidates are already more complex and sophisticated. Additionally to the acquisition and fusion model, a sustainable positive integration is crucial for success.

 

 

Combination of company acquisition and fusion: BETTER GET WELL ADVISED!

 

In the decision-making for a combined company acquisition and fusion the advantages of the model have to be evaluated as specifically better than the option without company fusion.

 

In general, we see two possible initial situations:

 

a.) The company for the “fusion purchase” has already been found or
b.) the fusion purchase is already defined as the fixed business aim but no suitable company has been found so far.

 

Both cases urgently require specific analyses and previous preparation work in order to use energy, money and time in efficient way. This will also raise the chance that the combined company purchase and fusion can be realized within the planned timeframe.

 

 

PROJECT CONSULTING: Analysis – Estimated Valuation – Recommendations for Measures

 

Companies sometimes react with an "I do it myself reflex", when a consultant gives the advise of using professional consulting services. – But experience shows that exactly this conduct leads to diversions, cost explosions and time losses. Unfortunately, very often projects are being completely stopped.

 

Starting with professional project consulting makes definitely sense! – The costs for it are manageable and limited as profit from the elemental aspects will be worked and cleared out in common. This already gives the indicatory answers to success chances, project and time needs, budgets to plan, etc.

 

Serious and engaged consultants as experts in company brokerage will always advise in a neutral, fair and independent way about the necessary projecting as well as about the realistic chances. – This basis leads to better decisions!

 

The following questions can be cleared by a project consultation for company acquisition and fusion. – Some examples:

 

• Is the existing project well structured? Are the aims realistic?
• Do I really know my company aims?
• Are the project costs and financing planned in a realistic way?
• What about the calculation of time budgets and time frames?
• Does the initial situation and objectives fit?
• Which strategy options exist? What are the advantages and disadvantages?
• Which project aims should meaningfully be selected?
• What kind of external and professional support is needed?
• Is the consulting chemistry right?
• What are the next steps, measures, decisions?

 

Also, the following elements can be worked out and cleared by a project consultation for a company acquisition including fusion:

 

• Analysis of state or phase of the existing project including suggestions for strategies and measures
• Target profiling and search strategy
• Consulting & support of project segments, i.e. negotiation support
• Analysis und catalogue of measures in process management
• Company valuation
• Purchasing and fusion model
• Active integration support
• Individual problems and current positions

 

From pre-merger to post-merger: Professional company brokerage and fusion support stays by your side from the first idea until the successful deal and integration.

 

 

PRE-MERGER

 

• Initial situation – professionally analyzed, described and evaluated
• Calculation of time budgets, efforts & costs
• Work out of steps, measures and sequences
• Neutral valuation of real chances & existing risks
• Eventually search for candidates and assessment

 

 

MERGER

 

• Negotiations
• Fusion model
• Company valuation
• Due diligence, if applicable
• Master plan for the integration of the fusion partner

 

The neutral fusion consulting service moderates the needs of both partners and already considers important aspects of the subsequent integration (employees, philosophy, culture, risk variables, market, competition, suppliers, etc.).

 

 

POST-MERGER

 

• Practice support of the measures
• Permanent success controlling
• Adaption & prepared corrections
• Support & strengthening of the company culture

 

 

PREFERABLY THE BEST ADVISE!

As consultants with long-term experience in company acquisition and fusion RPPC PRO Consult stands by your side

 

A company fusion is a deep transition in the development of every enterprise. Sophisticated tasks are facing growth potentials and risks, specialized synergy effects as well as the power of market and innovation. Discuss the chances, risks, potentials and possible company models with an experienced fusion consultant. – It’s worth doing it.

 

We have summarized further information for you at “Merger Consulting”.

 

RPPC ROLF POPP PRO Consult
The management

 

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ROLF POPP PRO Consult GmbH
DE-97070 Würzburg next to Frankfurt

business brokerage Germany Europe

Contact:
Tel. 0049-(0)931-70 52 85-70
rolf.popp@pro-consult.com

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