A strategic vision of the potential of a target.
CEPTON efficiently supports the development of complex operations, with its unique approach combining a strategic view of industrial projects and all aspects of the transactions, whether economic, financial or legal. Our team can be present for you at every step of the transaction. Beforehand, in order to identify and evaluate targets for external growth or potential partners (commercial & strategic due diligence). During the negotiations by including in real time all new information into the industrial project and the evaluation of the assets. Finally, after the transaction, to conduct the eventual integration process or help redefine the new firm’s strategy and business plan.
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SEARCH & SCREEN
CEPTON efficiently conducts research, fully evaluating external growth opportunities matched to your project specifications.
We work with you to define criteria based on your objectives, before identifying the best opportunities and evaluating the potential of acquiring a whole firm, or section of their activities.
We then present a qualified shortlist of relevant options that comply with your previously defined requirements.
CEPTON performs due diligence for corporate clients and private equity clients. We tailor each project to the needs of investors and their financial partners.
Regardless of the constraints on format or time, our ability to work quickly and efficiently ensures we provide clients with the critical, detailed analysis they need, including a thorough review of the target’s market, competitive positioning, and their strengths and weaknesses.
Typical themes of due diligence are:
- The market and its potential for growth
- The firm’s competitive positioning on each segment of the market
- The R&D portfolio and the firm’s IP
- Their industrial facilities and other tangible asset
- Their financial outlook
Our goal is typically to identify the potential of the target and highlight important risk factors likely to impact their value and future.
The increasing complexity and interconnections throughout the world enhances the need for hedging risks associated with the development of new activities.
Companies engage in alliances and develop partnerships with firms in different industries and countries, allowing the optimisation of their respective internal resources and capabilities.
Such strategic alliances can be extremely complex as they are neither complete acquisitions nor mere commercial contracts: there is a trade-off between time consuming preparations and potential complications that may occur, and the potential gains that can arise from such operations, which typically justify their growing importance to the global economy.
CEPTON helps design and implement successful strategic alliances with our rigorous, proven two-step approach.
We assess elements of the constitution between the parties and then follow a structured process of negotiation to ascertain the correct balance for sharing expertise.
«Evaluating a target, building a Joint-Venture or an alliance, spinning-off an activity.»
SUPPORT DURING NEGOTIATIONS AND INTERMEDIATION
CEPTON provides expertise in both strategy and transactions. This makes us a relevant and reliable advisor during the negotiation process.
We provide you with more than a simple discussion on price: we continuously support you with real-time data to help form a strong rationale and assist your negotiation strategy. We integrate this with a valuation of assets and vital legal element throughout discussions.
Where appropriate, we can also act as intermediates, allowing you to take advantage of our subject matter expertise and industry experience. For example, during a fundraising period or when developing a joint-venture between players from different industries, we can act as a mandated intermediary and represent you throughout the transaction.
BUSINESS PLAN AND VALUATION
CEPTON frequently works with start-ups and SMEs to redefine their business plan or launch a new activity. This process is becoming equally essential for larger corporations launching new activities and branches of their firm.
This process is especially helpful to focus a company’s resources on the most promising projects and understanding the various risks involved.
We can quantify ambitions in regards to turnover, estimate necessary CAPEX and OPEX investments and the financial needs of the firm, and make informed assumptions, to compile a robust business plan with appropriate milestones and key performance indicators defined.
Additionally, CEPTON can provide several valuation scenarios and/or challenge the valuations proposed by a seller or potential buyer.
BUSINESS SETUP AND GOVERNANCE
CEPTON can assist in optimising the legal and financial structure of new entities involving third parties. We thoroughly evaluate the distribution of responsibilities and make sure that each party has appropriate rights and fulfils their fiduciary duties.
We act as sparring partners during the discussions with financial and legal experts, anticipating potential bottlenecks or critical discussions such as shareholders’ agreements and the balance of power.
In the case of a strategic alliance, it is critical to define the exit conditions in advance, to ensure that if a partner withdraws the value created by the alliance is not completely lost.