Are you considering an acquisition of a company in Poland? Would you like to grow your existing business in Poland through acquisitions? Are you interested in M&A in Poland?

Typically, acquisitions take place when:

• a company is interested in rapid development, not possible organically
• a company intends to expand the scale of its business and enter a new market segment, which is frequently easier and more efficient by the means of acquiring another company
• an investor seeks opportunities for achieving high returns on investment

How to choose a takeover target?

Selecting appropriate target companies is a complex process and requires analyzing a range of different aspects, such as the:

• Probability of uninterrupted business operations after a change of ownership – transfer of relationships with customers, operational management, know-how, etc.
• Organizational structure and its dependence on the current owner
• Synergy effects with the buyer’s business
• Target valuation

Step 1. Identify acquisition targets

Depending on your investment criteria, there can be only a few to several dozen potential acquisition targets; a larger number may indicate that your criteria are not precise enough. The key is to quickly and efficiently identify targets and screen them for value to the buyer. This stage ends with drawing up the long list of acquisition targets.

Step 2. Verification of owner’s willingness to sell the company

The proposal to acquire the selected company is then discussed with the target’s owners. For them, it is always a difficult decision. Only a few of the owners are willing to consider selling their business. It is important that you properly present the value of your proposal to the target’s owners and emphasize the benefits (financial and non-financial) to them. This stage ends with the short list of acquisition targets.

Step 3. Due diligence of the target and negotiations of transaction terms

Prior to negotiations, the value of the acquisition target should be assessed. Reliability and accuracy of gathered information about the company should be verified. For this purpose, various valuation methods are used (most commonly, discounted cash flow method (DCF), comparative method and net asset value method). To achieve the second objective, a due diligence examination of the target is performed – a comprehensive analysis of the company with a focus on operations, financials, legal and tax issues.

6 key principles that will help you succeed in acquisition projects:

1. Involvement of experienced acquisition experts, for whom the transaction is a top priority.
2. Close cooperation with your technical and analytical team in order to properly evaluate the acquired business and design the post-acquisition plan.
3. Clearly defined decision-making process based on objective criteria.
4. Securing debt or other forms of required financing in advance.
5. Flexibility of transaction terms other than price, such as: future role of the selling owners, payment terms.
6. Continuous development of a strong relationship and trust with the target owners.

If you intend to grow your company through acquisitions, see how we can help you execute acquisition projects in Poland.

Learn more about acquisitions and ask us about potential transaction opportunities.