M&A Transaction Support
Recently, the global cement sector has seen some significant transactions. The recent financial crisis and the developing global overcapacity has led to re-examining asset portfolios across the world. The game changer mega mergers have also resulted in several secondary transactions and asset swaps that are still running their course. In addition, “strategic partnering” in various forms has also gained momentum in the post – crisis era in the cement sector.
Acquisitions and disposals:
In this environment CBA has been involved in supporting several M&A transactions at many levels. CBA’s understanding of how value is created in the cement industry is the cornerstone of our approach to this service. The main aspects that CBA has extensive expertise in are:
How to minimise the risk of an investment by examining the inputs to a valuation exercise. These aspects include:
- Market due diligence. Have a in depth understanding of the market (s) and explore future trends and developments. Support the revenue line of the valuation.
- Assess the assets in terms of operational and technical risks, identifying potential improvements. Support the cost inputs to the valuation.
- Assess the business set up of the assets and identify capability gaps that might impact on delivering projected performance. Define the risk areas and provide remedies going forward.
- Work on a realistic and achievable post – investment integration plan
CBA has extensive experience in assisting corporates to secure “strategic partners” resulting in “strategic alliances” be they JVs, Co-investments, minority shareholdings etc. CBA has undertaken several such projects ensuring a partnering structure that would support the longevity of such an entity.