M&A - page 2

M&A Advisor announced its list of finalists in the seventh edition of the International M&A Awards competition. RSM Poland, as one of the companies providing consultancy services for the transaction, was nominated in the category of Cross Border M&A Deal of the Year (Over $25 mm – $ 50 mm) of the M&A Advisor Awards. RSM Poland experts mutually supported the selling party jointly with Plante Moran, a renowned American auditing and consultancy company. They were responsible for consultancy on the project (including the implementation of controlling), prepared the Polish company for the sale and they also participated in the due diligence research.

Company valuation is a topic most managers and owners are likely to face at some point in running their large-sized businesses. The study is usually elaborated in connection with a prospective company acquisition/sale transaction, allotment of an organised part of the company into the structures of a new entity, or in relation to conditions imposed by regulations on financial review. These are, of course, only some examples – the list of circumstances that require or simply contribute to preparing a professional company valuation is much longer.

Let's say I purchased a company and... ... not everything is quite as I had assumed, although nobody was trying to cheat me. Does that sound familiar? I fear it does. In my job I work with people who are in charge of deciding whether to acquire another company, and if so – for what price. In the course of negotiation the price is usually established as a multiple of EBIT/EBITDA/net profit. I am personally not a supporter of this method. In my opinion it is much better to evaluate a company using the DCF methods in three scenarios: positive, neutral and negative. But who has time for such things these days? Due to its simplicity the multiple method is gaining many supporters among decision-makers.

On 12 June 2014 RSM Poland was awarded the title of Financial Due Diligence Provider of the Year in Poland. The awards given since 2010 by the British AI Global Media, Acquisition International Magazine and DealFlow Source are to reward the most deserving professionals in the business, legal, financial and investment communities.