Almost 18 months have passed since we joined the specialist global mid-market mergers and acquisitions advisory network, Translink Corporate Finance.
Whilst cross border transactions have always been a key part of our service, it would be an understatement to say that the hundreds of local experts Translink has at their disposal, across 30 countries, has had a significant impact on our ability to maximise the outcomes of transacting internationally.
Below are five of the key ways that membership of the network has helped us to deliver the best possible result for our clients:
- A contractual relationship that fosters a collaborative approach – The nature of Translink’s fee-sharing arrangements means that each of the offices is incentivised, on every deal, to actively assist in identifying and engaging with potential acquirers within their territory.
- Enhanced scale, reach and local knowledge – The relationship provides a contact network of over 600 experienced mergers and acquisitions (M&A) experts across 30 countries globally. Historically, desktop research undertaken in the UK has helped identify the most prominent strategic and financial buyers, but the Translink network provides an added dimension to identifying overseas buyers with localised, real-time market insight and personal relationships. In a recent transaction, the ultimate buyer wouldn’t have been considered without the help of Translink due to the limited disclosures on their website. Translink Spain’s insight made us aware of the company’s diversification and acquisition strategy, resulting in it being added to the list of potential buyers and them making a warm introduction.
- Collective intellectual capital and specialist sector experience – Many of our team have had past experiences with global networks, but Translink quickly proved themselves to be far more unique and effective. For one, communication and knowledge sharing between Translink offices are frequent, with not a day going by without a member of our team speaking to one of our international colleagues. Translink dealmakers meet twice a year (usually in person but virtually at the moment due to current events) to discuss live deal opportunities and share sector insights. This leads to close personal and business relationships which, when combined with a ‘win together’ fee-sharing arrangement and mentality, ensure that we optimise the outcome for our clients every time.
- Eliminates language and cultural barriers – Opportunities are introduced by native speaking M&A professionals in the most appropriate manner and acknowledging cultural sensitivities. This maximises the prospect of engaging with key decision-makers and guaranteeing that no important messages are lost in translation. Local differences in corporate finance best practice can also be easily highlighted, such as matters on the classification of working capital and debt items or differences in completion mechanisms, and addressed at an early stage, preventing value leakage later in the negotiation.
- Provides an additional layer to the deal team – The local Translink team augments interactions with buyers, providing an extra layer of support throughout the transaction. Whether it is assistance with scheduling calls, arranging overseas site visits, satisfying additional information requests or assisting in handling sensitive negotiations, Translink is on hand to make sure the process runs as smoothly as possible from start to finish. This has been increasingly important over the past 12 months with the frequently evolving changes to restrictions on international travel.
The factors identified above optimise the population of strategic purchasers and promote a truly global competitive process – which in our experience results in an increased number and quality of offers being received for a company. This significantly improves the negotiating position of shareholders, facilitating an increased likelihood of the removal of potentially onerous terms from letters of intent ahead of entering a period of exclusivity, whilst maximising price and minimising deal execution risk.
If you’re seeking expert advice and guidance on a cross-border transaction, please get in touch for a chat with a member of our Corporate Finance team here.