We advised a European company on buying out the majority in a privately owned company.
Our initial mandate was to explore the alternatives of an acquisition or a greenfield entry, the latter giving us a clear understanding of the cost structures of the industry. The client's preferred route to invest in India was through acquisition, and we identified and reviewed a number of potential candidates, focusing on a company based in South India.
Valuation expectations were high on the vendors' side, and we sustained the discussions over a prolonged period, eventually reaching agreement some 12 months after the initial contact. We assisted in a detailed due diligence and the obtaining of regulatory consents. The process gave the client valuable experience in a new market.
Subsequently we have assisted the company in a number of issues related to financing and personnel.
Indian vendors do have high expectations of value, based on the growth that India is experiencing, and there are many cases where their interest in price can outweigh the long term commercial interests of the business – lengthy negotiations can often have damaging effect on the underlying business. It is also important that the buyer understands the negotiation dynamics and that expectations as to the outcome are well managed.
We advised an NYSE listed company that was evaluating strategic options for its Indian subsidiary. A sale of the business was the client's preferred option.
Our client was sensitive about speed and confidentiality given the parent's public listing as well as to minimize business impact - being a service based business there were considerable risks to customer retention, payments and employee morale.
We executed a well-defined and customized process for our client, designed to generate robust interest from strategic parties, and achieved desired goals in a limited time frame.
The process took nine months to reach a definitive agreement and an additional three months for closing after agreement of contract terms.
An Indian manufacturing company was seeking to expand into Europe globalize its operations and move closer to European OEM clients.
With our local partners in Germany we identified two targets.
We managed negotiations with owners and management of the first company, with the vendors retaining a significant minority stake.
Within four months we completed a second acquisition in Germany to give the client a significant position in the domestic market.
The IAP network has advised a UK family office on major investments in India.
IAP was instrumental in the setting up a UK fund management company that currently manages $100m of assets invested in India including those of a UK AIM listed fund that invests predominantly into small and mid-cap Indian companies.
We have also advised several companies on capital raising at emerging, growth and expansion stages. We have assisted our clients in navigating the entire fund raising process including presenting an investment case, facilitating introduction to capital sources, negotiating terms and financing structure.
Our client operates in an industry where limitations remain in place on foreign ownership, making a joint venture a requirement for entry. In this case, they were seeking two partners to provide all India coverage for distribution of the product.
Over a prolonged period we helped investigate a number of possible candidates, reaching broad agreement with one and then jointly short listing and negotiating terms with the third partner. Full agreement was reached within seven months.
We were able to include in the agreement step up rights on attractive terms for our client in the event that the regulations change, which will in the long term maximise the returns to them from their investment in India.
Managing three way negotiations, including two Indian parties and an overseas client, required considerable skill and patience.
We assisted a manufacturing client to acquire full ownership of a joint venture in North India, and over subsequent years assisted in a variety of matters on which they sought our help. As the business grew they determined to establish a new facility in another part of the country.
We conducted a rigorous analysis of the available alternative locations, and selected with them a preferred site in a recently zoned, but unoccupied, industrial park. We advised on negotiations with the State Industrial Corporation for a long lease on the site and the provision of infrastructure to the factory and a range of related issues.
From the decision on the location to first production took 9 months. The company is already outgrowing the site and actively looking for further expansion opportunities.
While our focus is on financial advisory activities, we have been helpful in a wide variety of ways to this client, from issues relating to property, infrastructure, HR and financing.
Selected Client List
IAP has advised clients across a wide range of industries and geographies. Some of them are listed below. Many of
our assignments remain confidential but if you write to us it may be possible to provide further
details including references from existing clients.
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