Buy-Side: DCF Builds the Bridge for Acquisitions
Deloitte & Touche Corporate Finance LLC
A UK-based packaging company, owned by a private equity firm, hired an investment bank to run an auction process for its U.S.-based corrugated operations. Deloitte Corporate Finance LLC* (DCF) was the exclusive buy-side financial advisor in the acquisition of the operations. DCF introduced the buyer to the opportunity, advised on business valuation and diligence, and arranged the financing sources.
The seller’s investment banking firm identified several strategic and financial parties as potential acquirors; however, the bankers did not consider our client as a potential buyer. DCF had to convince the sellers that the acquirer was suitable for the business and had the ability to finance the transaction. Additionally, the private equity firm mandated an expedited process with a limited diligence period. The tight timeframe made satisfying the due diligence, financing, and regulatory procedures extremely difficult and challenging.
How We Helped
DCF introduced the acquirer to the opportunity and process. The team leveraged its knowledge of the business, relationships with corporate lenders, industry specialization, and transaction experience to submit an attractive valuation with committed financing and minimal additional diligence requirements to close. After being selected as the final horse, we closed the deal in about six weeks.
DCF’s deep coverage of the paper and packaging sector, credentials in completing middle-market transactions, and strong track-record of working with private equity groups, lenders, legal, regulatory and environmental services firms allowed DCF to provide our client with a significant investment opportunity as well as a professionally managed transaction process. The knowledge and resources provided by the DCF team and the acquiror provided a smooth acquisition.