Supporting a Strategic M&A Transaction
The Situation
A leading private North American manufacturer of wire and cable (~$5bn revenue) was undertaking an acquisition of a publicly-traded competitor in order to expand the scale of its operations and product offering. While the Company had a history of small bolt-on acquisitions, this transaction represented the largest acquisition in company history and would have a significant impact on the Company’s future. In addition, the Company did not have dedicated corporate development resources or standard internal processes. The Company engaged Accordion to augment its internal resources and provide corporate development and execution support on the M&A transaction.
Services
M&A Execution Support
Actionable Business Analytics
Project Management Oversight
The Execution
Our Accordion team comprised seasoned M&A practitioners with the necessary capabilities to assist in the transaction through close. The team included a Director and Vice President who were deployed full time at the Company’s headquarters.
- Based on discussions with senior management and the Board, we identified the areas that required particular focus, including:
- overall internal project leadership
- opportunity assessment and M&A/valuation analysis
- evaluation of acquisition financing alternatives
- Constructed a dynamic financial model and analyzed the merits of the transaction through detailed M&A analysis, including an evaluation of the proposed synergies, merger consequences including relevant sensitivities.
- Assisted in coordinating and aligning the due diligence process and work products from the Company’s accounting, finance, and operations teams.
- Helped the Company identify and engage a third-party to manage the transaction financing process and solicit quotes from banks beyond the Company’s existing lenders; Ultimately enabling the company to secure more favorable pricing and terms on the acquisition financing than its existing lenders had quoted.
The Results
For the duration of the strategic acquisition, Accordion provided high caliber corporate development and transaction execution support to augment the Company’s internal team. We engaged rapidly and got up to speed on all work streams, and worked seamlessly with 3rd party advisors including the investment banks and due diligence providers. All work streams were executed in an efficient manner, allowing the Company to sign and successfully close the transaction on schedule.