Evaluation of Potential Acquisition of a Regional Investment Bank
An asset management and investment banking company based in Bahrain.
The Business Situation
The Client was evaluating an option of acquiring a controlling stake in a Regional Investment Bank based in MENA. The acquisition was being viewed as an entry vehicle for the Client in specific geographies across key segments of the AM & IB sector.
The scope of work included providing key investment thesis, analyzing fit within the evolving strategy of the Client and impact of the proposed transaction on Client and its subsidiaries. The mandate also involved arriving at fair valuation of the Target and devising an appropriate transaction structure and pricing.
PKC analyzed the investment opportunity by conducting a comprehensive due diligence of the Target, including meeting the management and key personnel of the Target, thus coming up with overall acquisition analysis, highlighting key investment positives and negatives based on various parameters like financial and operational health of the company, plausible transaction structure, fit within the Client group, post acquisition integration benefits and challenges. Further, a post acquisition alignment analysis was carried out for the Client as a whole and for each of its business segments.
The Value We Added
PKC’s investment evaluation, due diligence and advice on the transaction structure and pricing provided the Client with an in-depth understanding about Target’s business, thus facilitating in making an informed investment decision.