Case Studies

Buy-side acquisition advisory

Recipe for Success
Growth through acquisition can be a very opportunistic strategy to take advantage of a depressed market. If implemented correctly, it can lead to an increase in market share, profits, as well as competitive advantage... Read more

Measure Twice, Cut Once
Valuing a Merger

Strategic growth

In a saturated or stagnant market, one of the best ways to increase revenue is through a merger. Although mergers instantly create a more dominant market position, getting through and negotiation and agreeing on the terms of a merger can be challenging.

Agreeing on the overall value can often be very tricky and has to be laid out in a way that all parties can come to agreement. Although there are many valuation techniques, not all apply uniformly and a solid assessment using each method and how they should be applied requires expertise that doesn't usually reside in both companies. Having a third party valuation can be the difference between a successful and an unsuccessful merger.

Recently, a pair of telecom companies approached us with expressed intent of merging to combine customer lists and distribution capabilities in order to create synergies and grow revenue. They needed a fair third-party valuation of the existing businesses in order to effectively assess the negotiated ownership split before moving forward.

Genoa worked with the companies as a neutral party, using a variety of valuation methods and industry analyses to measure current and future contribution of each company in order to verify the accuracy of the pre-merger ownership negotiations.