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ACQUISITION AND DIVESTMENT PROCESSES

The acquisition process is managed by a team, which normally includes merchant bankers, auditors, management consultants, controllers, legal and tax advisers, corporate communication people and those responsible for the business. Both the seller and the buyer have their own teams. In the field of acquisitions and divestments my role has varied over the years. As a legal counsellor of Huhtamaki Oyj in the early 80's, I attended to acquisitions. Later on, the role changed to business analysis and negotiation processes. The twenty years have taught me how to manage the entire process, what players are needed in different cases, how to tackle the business risks, how to achieve the desired results in negotiations and what the next steps are after a deal has been signed.

The risks should be covered to the level the acquirer can carry on without endangering its own overall business. Of vital importance is to understand the size of the premium the buyer can pay for the target company. The size of an acceptable premium differs depending on the synergy effect the acquisition will bring to the buyer. Thus there should always be a clear idea of how to adjust the business of the acquired company to the buyer's own business structure. The takeover plan should already be prepared before negotiations begin.

One cannot underestimate the importance of preparation work for the buyer. "Homework" done well helps the negotiation process. The buyer thus knows the highest price it can pay for the target company. Without a thorough preparatory process the desired results cannot be achieved.

I offer my services to the client as an active member of the acquisition team, a creator of the takeover plan and even as one responsible for implementation of the takeover always keeping in mind that my contribution must bring added value to the process. Over the years I have created a network of international professionals who can be members of the team whenever needed.

References

1. Keyes Italiana S.A, subsidiary of Huhtamäki, Sicily 2001
Divestment process. Negotiation process. Deal 2001.
2. Mono Container, subsidiary of Nampak Limited, South Africa 2000. Business analysis. Acquisition 2000.
3. Brasholanda, Curitiba, Brazil 1998-1999. Family-owned company. Business analysis, negotiation process and takeover plan. Acquisition 1999.
4. Three different family-owned food packaging companies. Mexico 1999. Business analysis, negotiation processes.
5. Three different family-owned food packaging companies. Chile 1997-1999. Business analysis, negotiation processes.
6. A public food packaging company. Brazil 1998. Business analysis at two production units in Brazil and one in Argentina, negotiation process.
7. Kaps S.A., joint venture of Huhtamaki. Argentina 1998. Business analysis, negotiation process. Deal 1998.
8. Sealright Inc and TetraCup public companies. USA 1998. Operations Audit of four different production units in the US. Acquisition 1998.
9. A family-owned cutlery producing company. Germany 1998-1999. Business analysis. Negotiation process.
10. A family-owned paper-converting company. Spain 1994. Business analysis. Negotiation process. Asset deal 1994.
11. Divestment of an imported products business. Finland 1991. Planning of the process.
12. A family-owned company in technical services. Finland 1990. Business analysis. Negotiation process. Asset deal 1990.
13. A family-owned company. Divestment of two retail chains. Finland 1990
Business analysis. Negotiation process.
14. Divestment of a family-owned telecommunications company. Finland 1990
Business analysis.
15. Analysis to create a joint venture with three partners. Finland 1990. Business analysis. Negotiation process.
16. Pallarés Group, a family-owned food packaging company. Spain 1985
Business analysis. Negotiation process. Acquisition 1985.
17. A family-owned company in the metal industry. Sweden 1984
Business analysis. Negotiation process. Company filed for bankruptcy before negotiations ended, due to our analysis of the business.
18. Company in the metal industry. Sweden 1982
Business analysis. Negotiation process. Asset deal 1982.
19. Company in food industry. Finland 1981
Negotiation process. Asset deal 1981.
20. Joint venture in food industry. Finland 1981
Negotiation process. Joint venture formed 1981.
21. Divestment of technical service business. Finland 1981
Negotiation process. Deal 1981.
22. Asset deal in food industry. Finland 1981
Negotiation process. Production unit acquired 1981.