Mergers and Acquisitions

Analyse Potential

ANALYSE POTENTIAL In today’s business environment companies are becoming increasingly dependent on co-operation for mutual benefit. Despite the importance of such arrangements to company performance, they rarely take the form of a formal legal partnership. Assessing the dynamics of such relationships is therefore often an essential stage in understanding the true value of any modern business. Affinity Solutions’ wide experience of co-operative arrangements makes us ideally placed to give an independent analysis of any shared venture.

Delivering the promise

The process used to support any mergers and acquisitions activity will be entirely dependent on the nature of the partnership activity and the individual brief, but may include reviews of:

• Strategy – Is the partnership meeting its stated objectives? Does the partnership complement the wider brand strategy?
• Customer satisfaction – Are key customers receiving the service they expect? Are there any key issues?
• Competition – How does the partnership compare with the competition?
• Financials – Are financial returns in line with expectations and market trends?
• Resources – Are the resources in place, sufficient to develop the partnership in the long-term
• Suppliers– Are suppliers providing the operational support promised? Are suppliers investing in the relationship and do they share you vision?
• Contractual – What is the nature of contractual arrangements? What is the nature of barriers to entry and exit? Are partners living up to obligations?
• Relationship – What is the nature of the working relationship? Is there friction between the two organisations?
• Development – What development plans exist and do the organisations share a common vision?

Account experience

Affinity Solutions’ experience of mergers and acquisitions includes: Assisting the Northern Acquisition Finance team at Fortis Bank, by performing commercial due diligence on Webb Ivory, the UK’s leading charity mail order supplier, in connection with funding by Fortis Bank of the management buy-out of Webb Ivory. The aim of the project was to provide an independent assessment of the competitive position of the business and provide feed back on the dynamics of key customer relationships. The management buy-out was completed in April 2001 within the outline timetable provided.

“Affinity Solutions assisted our understanding of the dynamics of this specialist market and the relationships which would be key to the future success of the business.”
Daniel Myers, Northern Head of Acquisition Finance, Fortis Bank

“Affinity Solutions specialist knowledge and ability to deliver within the tight timescale proved invaluable during negotiations as well as providing a great deal of useful information for the management team to use in the future.”
Bernard Kumeta, Group Managing Director, Webb Group Limited