Acquisition of Indian subsidiary

The challenge

An IT services company wished to expand its offerings and be able to provide offshore services from India. It was decided, therefore, that an Indian company, with a complementary set of IT services, should be sought and acquired.

Activity / solution

• Developed business case with the board sponsor for the desired target company.
• Researched market and created a long list of suitable companies, which was refined with the sponsor to a short-list.
• Undertook site visits in India to short-listed companies and select one to proceed towards acquisition.
• Planned and executed management of entire acquisition project, including:
  • Making an offer to target company leading to the signing of a non-binding Term Sheet.
  • Co-ordinating management due diligence with internal personnel.
  • Co-ordinating legal and financial due diligence using external lawyers and accountants.
  • Negotiation and agreement of Sale and Purchase Agreement.
  • Planning and executing hour-by-hour schedule for signing and closing across Europe and India.
  • Co-ordinating all legal, regulatory and communication activities associated with acquisition, both pre- and post-acquisition.

Results

The acquisition was delivered within the planned timescales and on budget. The newly-acquired company, its staff and customers were promptly informed (at the right time) and the transition to the new parent company was delivered seamlessly.  The existing customers were delighted with the benefits the acquisition would bring them.

All regulatory and legal requirements were met and the market reaction was positively.