Transaction Advisory Services
The liberalization of the Indian economy and the multitude of reforms instituted
have resulted in a “flux” in the industrial and services sector of India. Companies
are increasingly resorting to acquisitions as a means to consolidate and grow rapidly.
The emergence of a large number of professional Private Equity and Venture Capital
firms, the increasing maturity of capital markets, in terms of the large number
of institutional players and improved systems, has provided myriad opportunities
in structuring innovative deals by raising debt or arranging equity financing for
The ongoing liberalization programme of the Government is also expected to gain
momentum resulting in significant opportunities in the market for Disinvestments,
induction of strategic partners, Joint-ventures, spin-offs, etc.
Through our internally developed approaches and methodologies, vast knowledge, expertise,
networking and experience assimilated in the last 4 decades, we believe that we
have a good understanding of our clients’ needs and requirements. We are well equipped
to meet the fast changing and evolving requirements, so as to provide our clients
with effective solutions that would exceed their shareholders’ value creation expectations.
We help organisations work smarter and grow faster. Reach out to us to build effective
organisations, reduce costs, manage risk and regulation and leverage talent.
Lunawat & Co.’s valuation practice gathers information by understanding the specific
industry in which the client operates and provides proactive commercial and market
– focused data. Our analysis provides clear, concise and credible advice that will
add value in negotiating transactions, assisting in the restructuring process or
segregating costs of an asset.
Lunawat & Co.’s professionals along with our expert associates provide independent
advice to directors, shareholders or management to:
- Business Valuations – determine the right price to pay or accept for a business
- Determine the value of equity to be issued to new shareholders or partners
- Evaluate merger / swap ratios
- Evaluate and defend an unwelcome and unsolicited takeover bid
- ESOP Valuations
- Valuations for Purchase Price Allocation in a Slump Sale
The Capital services offered by the Firm is through a good network of Private Equity,
Venture Capital, Institutional, Angel and High Net-worth Individual investors that
it works with globally to understand what each investor brings to the table and
what they look for in potential investees.
Once we understand a client’s business and capital needs we will be able to find
the right partner who brings more than just capital. We conduct a thorough analysis
of the business, prepare the most relevant materials and run a systematic marketing
process to find the best investor for our clients
We also assist in, advising corporations, institutions and sovereign entities on
the structure of new debt issues and the refinancing of existing obligations, provide
advice on refinancing of acquisitions to replace short – term finance with more
efficient long – term solutions from the banking sector or the capital markets,
help create and implement efficient financing, including both domestic and transnational
leasing transactions and provide advice on refinancing of asset-based businesses
and the design and financing of novel solutions in vendor financing.
Corporate Finance Advisory
Within the commercial framework of a deal, a wide range of financing and structuring
options are possible.
We focus our approach on the most effective options in terms of cost and tax efficiency
and provide advice on the alternatives available for all types of corporate transactions
including mergers and acquisitions and leveraged buyouts.
Mergers, Acquisitions & Re-structuring
The growth of the corporate sector in the recent years coupled with the liberalization
and globalization of the Indian economy has made the subject of business restructuring
and reorganization of great interest to businessmen and professionals alike. Various
policy changes have made Indian managements review their business plans in the context
of size, reach and global access. Businesses today need to not only to be in a position
to survive but also to grow, diversify and consolidate their areas of best practices.
We provide corporate restructuring through a variety of mechanisms, including mergers,
acquisitions, divestures, sales etc. assisting clients through its internally developed
approaches and methodologies in the entire transaction process-ranging from providing
indicative values to deal closure.
Our approach involves competitive preparedness for a smooth transition from an era
of regulation and protection to the free trade globalized market of the next millennium,
based on a credible track record, to strengthen and nurture core capabilities with
a view to attain and sustain a leadership position in the market, aim at specialization,
which may involve getting out of investments that are non-core and concentrating
on the core competencies of the corporate and allied group companies, restructuring
to acquire resources and capabilities required to compete effectively in the revamped
dynamic economic environment, a recognition of the fact that only a few players
dominate each segment of the market and therefore to restructure/reconstruct a business
to be in line with the global trends, restructuring to facilitate joint ventures
and alliances. We help our clients at every stage of the restructuring exercise
keeping in mind the future and the opportunities it brings, by providing competent
Negotiation & Transaction Management
Even when a deal has been agreed on, there is still a significant amount of work
that needs to be completed. Effective time and resource management is critical to
the successful completion of a transaction. Our services include setting up and
monitoring the timetable, taking each step forward towards completion and working
closely with other professionals working on the transaction. We tailor our services
to the needs of our clients and provide them with regular progress reports.
- Discussing the valuation
- Negotiation of financial terms
- Outlining preferable terms
- Briefly describing tax and accounting consequences of each proposal
- Suggesting counter proposal alternatives
- Communicating with interested parties
- Reporting potential problems
- Attending and assisting in all negotiating sessions leading to a transaction
- Helps manage the negotiation process and achieve successful implementation without
Sales, Divestitures & Demergers
With the opening up of the Indian economy, and the inflow of large multinational
corporations, the businesses earlier protected by regulatory entry barriers are
now faced with relentless competition. This has led to a virtual shakeout in almost
all industries propagated with the “survival of the fittest theory” the weaker players
have either opted to close shop or sell out.
Working with our clients we start with the strategy and consider what the best options
could be. We establish price expectations and realistic valuation parameters taking
into account taxation and other industry norms to ensure the most beneficial structure
We also identify and assess prospective purchasers, nationally and internationally.
We design the process to maximize proceeds for the vendor whether by competitive
bidding or other methodologies.
Our approach involves our strength to nurture the core capabilities with a view
to attain and sustain a leadership position in the market, aim at specialization,
which may involve divesting from non-core investments and concentrating on the core
competencies. We help our clients at every stage of the exercise keeping in mind
the future and the opportunities it brings, by providing competent financial advice.
Transaction Evaluation (Due Diligence)
The term due diligence describes a general duty to exercise care in any transaction.
It spans investigation into all relevant aspects of the past, present, and predictable
future of the business of a company.
The main purpose behind conducting due diligence usually is
- Confirmation that the business is what it appears to be;
- Identify potential “deal killer” defects in the target and avoid a bad business
- Gain information that will be useful for valuing assets, defining representations
and warranties, and/or negotiating price concessions; and
At Lunawat & Co., we believe that effective due diligence depends on identifying
and managing significant transaction issues, anticipating and identifying potentially
important risk and negotiation issues. Our approach is to save time, money and effort
as well as to help in influencing the price at the outset of the deal.
A well-run due diligence program can guarantee that a business transaction will
be successful. It can improve the odds and eliminate risk to a very large extent
thereby ensuring positive results for the company.