Large car park operator
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Client
A leading Emirati family office with diverse business interests.
Assignment
Approach
Business Benefits
Acquire a significant minority equity stake in the above entity from a European strategic who was looking for a partial exit. The mandate to IdealCap was to conduct the transaction from start to completion.
First phase: We initiated discussion with the Seller, obtained information on the Target and agreed the specifics - the stake, structure, timing & exclusivity, and noted their ask. We then drafted an EOI (unpriced) for our Client to issue.
Valuation: Parallelly, we conducted a valuation of the Target, and of the (non-controlling) stake on offer. We used this information to negotiate with the Seller the commercials and other terms of the transaction.
Letter of Intent (LoI): Upon agreeing the price & other terms, and upon obtaining waivers from other shareholders, we drafted the LoI (non-binding) for our Client to issue.
Due Diligence & Mitigation: Post-LoI, within the exclusivity period, we conducted a financial due diligence (FDD) with a special focus on sustainable earnings, and coordinated the legal DD. As to the risks uncovered by the DD, we negotiated certain additional warranties and deferring of a portion of the consideration.
Definitive Agreements: Post-DD, we assisted Client's legal counsel with commercial inputs in drafting the SPA and the SHA and negotiated them with the Seller until eventual sign-off by both parties.
Remaining Process: We followed up for fulfilment of CPs - some were moved to CSs; arranged for drafting of the STA; carried through with the closing procedures at the public notary, the payment of consideration and the consequent updating of records at the DED and the Chamber of Commerce.
The entire process took 3 months from start to finish.
Strong negotiation led to an attractive purchase price for our Client; speedy & efficient execution of the transaction ensured minimal need for Client involvement. The Client expressed their satisfaction by appointing IdealCap's deal lead to the Board of the Target.