Our Transaction Process

Federation Capital's principals have completed many successful business sales, acquisitions and capital raisings for clients over an extended period of time. That experience has taught us much about what needs to be done to achieve premium client outcomes. 

We have distilled this experience into an effective strategic process that can be tailored to meet individual client objectives ensuring clients achieve excellent results.

STAGE 1:

Strategy - We start by understanding your business and objectives, identifying realistic options and then designing a go to market strategy (sometimes more than one) that provides the best opportunity to meet those objectives.

Documentation - The aim of any marketing documentation is to show your business/opportunity in its best light. Before doing this we must first understand the business well and then work out what documentation will suit it best in the marketing phase. Before creating the documentation we often undertake considerable but critical work to adjust the financials of the business to "normalise" them before presention to targets.

Target Research - This is an important task in any transactional mandate; first we identify "strategic fit statements" for groups of targets before we identify individual targets utilising our industry knowledge and networks and those of our client before adding to this through bespoke research.

STAGE 2:

Marketing - We approach all agreed targets on a confidential basis, executing NDAs for those that indicate their interest. We provide detailed information only to those target that are engaged. During the marketing process we are continuously re-qualifying the interest of targets.

STAGE 3:

Negotiation - The key to realising a great outcome for our clients is in recognising it is just as important to understand what's important to individual targets. In this way we aim to meet the objectives of both parties, thereby increasing the likelihood of a successful transaction.

Structuring - Each party will have different ideas about what's important to them in how a transaction is structured from both commercial and tax perspectives. Using this knowledge, as well as many years of experience in structuring transactions, we are able to meet our client's most important objectives first in any structuring negotiation.

STAGE 4:

Due Diligence - Whist we do not carry out due diligence ourselves, we keenly project manage this activity as it has the greatest capacity to lessen/increase the value to our client. In particular, our aim during a sales process is not to have information reported back to the target without first addressing the issue.

Legal Contracts - We manage this process in three ways; firstly, by authoring a detailed Heads Of Agreement containing all the commercial terms of the agreement in Stage 3, secondly, by helping our client to select an appropriate commercial lawyer, and thirdly, by reviewing the legal documentation with our client and in constantly communicating with the target.

Need Advice?

To arrange a confidential,  no-obligation discussion, please contact us on:

+61 2 8386 3206 or info@fedcap.com.au

Planning A Transaction?

To arrange a confidential,  no-obligation discussion, please contact us on:

(02) 8386 3206 or  info@fedcap.com.au

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