Mergers & Acquisitions
Mergers in the Commercial Banks present one of the greatest challenges today. Indeed if we notice, the vast majority of the "empire building CEOs" are no longer at the helm of their institutions.
In the financial markets, the Merger (or Acquisition) is not only about the formation of the strategy, and valuation of the equity based on the comparable institutions, but above all it is the evaluation of the balance sheet and the analysis of its strength and stability.
As the result, Mergers and Acquisitions in the Financial Sector need to be very carefully analysed, from the viewpoint of instrument valuations, analysis of the liability structure, durations, refinancing options, repayment profiles. A wrong move, can not only disable the acquirer to implement its planned strategic savings and platform sharing, but in extreme cases it can even lead to its bankrupcy, as the deterioration of the asset quality of the purchased company can quickly require the combined company to raise more and more capital to cover the losses.
Advisory to the Acquirer
Vision Finance employees have a lot of experience in analyzing the balance sheets of the companies, and as the result we are very well placed to conduct the needed due diligence to asses not only the strategic fit of the combined entities, but also the valuation and volatility of the balance sheet that is being acquired.
In addition Vision Finance, not taking any proprietary positions, has no conflicts of interest between providing valuations for the products and its own books, as well as can be fully entrusted to conduct the full research.
Advisory to the Target
Vision Finance is equally happy to conduct due diligence for the for the seller who wishes to obtain an independent opinion to the quality of its balance sheet, without disclosing its books to the possibly competing investment banks. If needed Vision Finance can form recommendation as to the either rearrangement and restructuring of some assets, and in some cases even their disposal.