Emerging markets such as the PRC present a bewildering array of strategic M&A opportunities but finding the right partner and doing the right deal are fundamental to a successful market entry and growth strategy. We provide a full suite of M&A and due diligence services designed to support you throughout the M&A process.
At the outset of the process we can help to evaluate market opportunities, develop an entry strategy and evaluate M&A opportunities.Once a target has been identified our Deals specialists provide a full range of financial, tax, market, IT and operational due diligence services to support a detailed evaluation of a potential purchase of a fund manager or fund, as well as advice on deal structuring and negotiation support. The objective of this due diligence is to ensure that the acquirer buys what it thinks it is buying, by challenging and validating assumptions that underlie a deal and giving the acquirer a coherent overview of the operations of the investment management or fund business being acquired. Building on this understanding, our service identifies opportunities for operational improvement, and works alongside management to quantify and deliver business opportunities including areas of synergy and cost reduction in the post-deal environment.
Using the wealth of specific investment fund expertise and insights from advising on deals in the sector, we provide views on the quality of the business and projected revenue performance of the target. This is based both on a detailed understanding of the market in which the fund manager operates, as well as an evaluation of the competitive position of the target, its products and its strategic plan.
It is important that due diligence on a fund manager addresses the risks of such a business that may not be present in a more retail-focussed investment management business. For example, we address the unique compliance risks associated with the domicile of the funds and operations in emerging credit markets; the human resources risks associated with combining fund businesses with different investment strategies and philosophies; the taxation risks associated with inappropriate structuring; and the impact of performance fees and performance history on the stability of the revenue stream.