Transaction Services
Our role is to assist buyers and sellers (entrepreneurs, companies or investment funds) in the context of their acquisition or disposal process on accounting and financial aspects. Our intervention aims to secure and optimize the conditions of the transaction.
In order to optimize the conditions of our interventions, we regularly use electronic data-room systems. The use of a secure data exchange space can be a preliminary phase in order to limit travel costs. However, on-site interventions in close relationship with the general and financial management of the “target” often appear to be fundamental.
We are specialized on smidCap in the industrial and service sectors, including in a turnaround context (automotive equipment manufacturers, road hauliers…). AFIVAL regularly appears in the rankings of the main players in Transactions Services and French Restructuring (Business Magazine, Décideurs, Cfnews).
Examples of investors involved in the transactions we have carried out: Weinberg Capital, BPI France Investissements, FMEA Rank 1 and 2, BNPDev, Sodero Gestion, Alliance Entreprendre, Ouest Croissance, Esfin Participations, etc. You can also view some of our transactions on the reference page.
The assets of AFIVAL Audit&Conseil to accompany you :
- A due diligence carried out directly by the partner experienced in the field of transactions with the constitution of a dedicated team according to the size of the file.
- A reactivity and an important availability.
- A budget and an intervention adapted to “smid caps” operations.
The content of our Transaction Services interventions mainly concerns financial due diligence missions (acquisition and vendor), business plan and cash flow plan analysis or financial reporting.
Our restructuring services can be carried out prior to an acquisition (specific acquisition due diligence for a company in turnaround) or during a crisis situation outside of an investment context.
The content of our interventions is presented below.
- Analysis of the reality, substance and sustainability of the turnover.
- Study of the recurrence of profitability indicators such as Ebit, Ebitda…
- Review of the availability of cash and resources that can be mobilized in the short term. Our approach leads in particular to explain the mechanisms of cash flow generation and the causes of any observed cash stress.
- Analysis of actual net debt, including off-balance sheet items that may give rise to foreseeable disbursements and non-operating working capital items.
- Analysis of historical accounting items that may lead to the updating of certain practices (recognition of unfounded deferred taxes that fictitiously increase shareholders’ equity, overvalued inventories, etc.).
- Analysis and reliability of forecasts: ability of the target to achieve business and cash flow objectives based on past performance; plausibility of forecasts based on market data, etc.
- Analysis of the strategic situation of the target company and identification of the risks and opportunities included in the business plan.
- Presentation of the conclusions to the acquirer in the form of a clear and explicit report.
- Assistance in the negotiation of financial terms (guarantees, price and price adjustment clauses, etc.).
- Assistance in the preparation and management of the data room.
- Participation in the preparation of the information memorandum and/or Vendor Due Diligences (VDD) report.
- Assistance in the modeling of forecasts and business plan.
- Preparing the company or the branch of activity for the sale (routing, control of information flows…).
- Assistance in the negotiation of financial conditions (guarantees, prices and price adjustment clauses…).
- Generally speaking, we advise you in the optimization of the financial terms of the transaction (LBO, contributions, preparation of a file for the attention of a contribution and merger auditor…).
- Economic and financial diagnosis prior to the restructuring measures (probability of survival with respect to available cash with the definition of a 13-week cash flow plan, analysis of underperformance indicators, identification of areas of loss, etc.).
- Assistance with the financial modeling of the various restructuring options (asset disposals, debt restructuring, redundancy plan, etc.) and analysis of the underlying value creation potential.
- Assistance in the design or review of operating and cash flow forecasts established in a turnaround context.
- Assistance in the preparation of a financial restructuring proposal.
- We assist the Accounting and Finance Departments in the implementation of financial reporting.
- We carry out a preliminary diagnosis of the accounting and financial environment.
- We propose an optimal financial reporting process.
- We define the key financial aggregates and indicators to be monitored.
