Facing a more challenging environment for its automotive business, Lumeneo SAS, the French based light-weight electric car maker, had to chase growth capital outside the European borders to unleash its potential. The unique-concept car maker pursued GCC-based funding to reposition itself for growth and achieve its Pan-European strategy and business plan. The company was not new to partial acquisitions, having executed one before, on its way to becoming a regional leader in the industry. However, this transaction was a bit different.
Above 15 percent stake is certainly labeled as "a lot at stake" and managing an acquisition that fundamentally reshapes the acquired company and its ownership structure meant there is no space for blunders.
For more information on Lumeneo, visit www.lumeneo.fr
Our Client, Hamad Holdings, a GCC-based investment company, having demonstrated interest in financing Lumeneo's vision and sharing the realization of their revolutionary concept, engaged Okeili & Co. to complete the acquisition employing our Buy-Side Transaction Services team within our M&A Practice.
What Was the Real Challenge?
In every acquisition transaction, the devil lies in the details and the risk factors that may affect the strategic, financial and legal motivation behind the deal are fairly extensive. Those factors are further elaborated below:
1. On the strategic motivation, the factors are mainly related to the key value drivers at the heart of the transaction, the challenging assumptions about future performance and finally the issues to be addressed post acquisition
2. On the financial motivation, the factors are mainly related to the value assessed and endorsed by the seller, the optimal deal structure and the financial metrics pertinent to future performance
3. On the legal motivation, the factors are mainly related to the protection required for the acquirer during the sale process and post-sale issues, mainly related to the target entity governance structure and minority shareholder rights
How Did Okeili & Co Help?
Okeili & Co Buy-Side team assisted Hamad Holdings in making the right decisions about managing the transaction risk factors early in the process. Our services covered:
Target Company Valuation
Financial, Legal & Tax Due Diligence
Optimal Deal Structuring
Closure & Post Closure Directives
Carrying out the above, our transaction team co-lived the premises of Lumeneo in Vernouillet, a beautiful village in the French countryside, and deep-dived into the many details surrounding the transaction, valued the company, structured the deal under a special purpose vehicle and successfully closed the transaction. Our team's core focus was to make sure that the Client's transaction cost, invested in Okeili & Co time and resources, had higher probability to materialize in the timely closing of a maturely premeditated transaction another success story in our growing M&A practice.
About Okeili & Co.
www.okeili.com | engage@okeili.com
Okeili & Co. is a boutique management advisory firm and the region's leading advisor on Family Business. The firm focuses on three practices mainly Family Firm Governance, Mergers & Acquisitions and Strategy & Planning. Our Family Firm Governance involves Succession Planning, Family Governance and Corporate Governance. Our Mergers & Acquisitions practice focuses on maximizing shareholder value by advising board and company leadership on buy-side and sell-side transactions. Our Strategy & Planning practice includes Strategic, Business and Operational Planning for both start-ups and existing business units.
For more information on our M&A practice, please feel free to email us @ engage@okeili.com or call us at +961 1 985 995 / +966 55 97 96 888
© Press Release 2012
