Pollination Capital's services focus on creating synergies with their clients by assisting them in mergers & acquisitions and business valuations, and offering training on corporate finance related topics.
MERGERS & ACQUISITIONS
An acquisition strategy is best executed in a well-planned manner
and by being selective. The key to successful acquisitions is to understand
the synergy benefits that need to be realised in order to give the acquiring
business a competitive advantage. The buying process begins with an
understanding of the acquisition strategy of the client. Johann can assist in any of
the stages or for the full execution of the acquisition process, which typically involves:
CO-DEFINING THE ACQUISITION STRATEGY
The buying process begins with an understanding of the acquisition strategy of the client. He normally meets with the client and co-define the strategic and transaction criteria covering: synergy benefits sought, strategic fit sought, growth areas targeted, key characteristics of acquisition targets, valuation parameters (earnings multiples, investment hurdle rate, goodwill as % of enterprise value, etc.), transaction size, desired transaction mechanism (business or shares, earn-outs, claw-backs, claw-ins, etc.), and financing method (cash, debt, share-swap, vendor finance).
TARGETING, APPROACHING AND ASSESSING COMPANIES
With a proper understanding of the target companies and the synergy benefits sought from the deals, i.e. the acquisition rationale and transaction parameters, he begins identifying companies from his network or by means of research to find a likely fit. These companies can be approached without disclosing the client’s name at this stage, after which he engages with the interested companies and assesses whether they fit into the client’s pre-defined criteria.
EXECUTIVE SUMMARY AND VALUATION
An executive summary (+/- 10 pages) is compiled for consideration by the client’s investment committee. A valuation is also done to analyse the transaction viability for the client.
The negotiation process starts with Johann on board to assist in facilitating these discussions in two key ways: designing transaction mechanisms to bridge transaction expectation gaps, and working with the seller or buyer throughout the process.
TERM SHEET AND DUE DILIGENCE
The term sheets are drafted and facilitated. He also assists with the preparation of due diligence (assisting in getting data room ready if needed) and the closing-off of due diligence (assisting with any outstanding issues).
Transaction structuring with high-level tax planning is done to engineer a transaction suitable to all the parties.
FINALISING THE TRANSACTION
Johann works closely with the legal advisors when the contracts are drafted to make sure that the commercial intent negotiated between the parties is accurately reflected.
The value of any asset is ultimately determined through a negotiation process between a willing and knowledgeable buyer and seller. An understanding of the intrinsic value of the business is thus essential for the buyer or seller as it enables them to negotiate with the necessary knowledge in order to make an informed decision. This should also form the basis of any value determined for accounting, tax and other regulatory purposes.
Johann is a highly experienced business valuer, having done business valuations since 1998 for multiple purposes, such as acquisitions and disposals, legal disputes, restructurings, management buy-outs, and IAS36 and IFRS3 valuations for auditing purposes. These valuations were done for companies ranging from small companies to multi-national and listed groups.
Johann is also the founder of Worth.Business and an active user of this application to value businesses. This enables him to do valuations that range from relatively simple to complex at a competitive fee for smaller entities to large corporations.
Johann offers the following face-to-face (Google, Zoom or Microsoft Teams) online consulting services to Worth.Business subscribers:
1-on-1 mentoring and training on how to use the Worth.Business online valuation platform
Troubleshooting and discussing valuations work-in-progress
Reviewing valuations and discussing them with subscribers
Finalising valuations on behalf of subscribers
Other assistance to subscribers
WEBINARS & TRAINING
Johann is a seasoned speaker and shares his research results and practical experience on a regular basis. He has presented at more than 50 corporate finance-focused seminars since 2008 – in South Africa’s major business centres and abroad, in Singapore, Malaysia and Indonesia. The topics presented include Financial Due Diligence, Forecasting & Budgeting, M&A strategy, and Synergy benefits.
A vast resource of M&A related training courses has been built up over the years of Johann’s corporate finance training career. These existing courses as well as new researched material are applied to assemble customised training courses on an as-needed basis.
Training providers and corporate clients are invited to get in touch to discuss their specific training needs and how Johann can assist.
A number of webinars are also being developed and will be presented in the near future.