Mergers & Acquisitions is responsible for structuring and executing a wide range of complex domestic and international transactions including acquisitions, divestitures, mergers, joint ventures, corporate restructurings, shareholder relations, recapitalizations, spin-offs, exchange offers, leveraged buyouts and defenses against unsolicited takeover attempts. M&A also establishes and maintains strategic dialogues with existing and potential clients, provides financial advice and solutions to strategic problems and assists clients in achieving short- and long-term strategic objectives.

We select and value targets for our clients; we determine the value creation potential of the transaction; and we provide full execution support from early discussions to negotiations and closing.

For example, if, as the result of a corporate strategy engagement, we have helped select an acquisition target for a client, we might start by preparing all the "outside-in" material required to structure a concrete deal proposal. We will then facilitate the formal approach; advise on an optimal execution process and timetable; coordinate the work of other advisors leveraging their specific knowledge and contributions; and play the center-forward role in deal structuring, valuation, due diligence and elaboration of the joint industrial plan.

By combining deep industry knowledge with world-class M&A execution skills, Pytheas helps the client implement the growth path set out during the preparatory strategic phase

Our work in the mergers, acquisitions and divestiture advisory entails:

Developing value-creating M&A strategy

Given our strategy capabilities, Pytheas can identify where M&As can accelerate a company's growth and profitability prospects. Through our in-depth industry expertise worldwide, Pytheas can help identify a company's "gaps" and target companies that could fill those gaps. Our industry expertise enables Pytheas not only to understand current value drivers for M&As, but also to assess how the keys to success in an industry will changes over time and what will be the resulting implications for potential M&A transactions

Identifying the optimal structural solution for a transaction

With clients who have decided to approach a specific target to propose a potential union, we review alternative structural solutions - from full merger to alliance/commercial agreement - and select the optimal configuration within the perceived solution space. We work with clients to identify from the start the key "deal breakers" on the way forward.

Developing a full transaction valuation

Applying state-of-the-art analytical methodologies, we help clients appraise the total net value creation potential of the transaction. This includes an estimate of their own valuation, of the partner's stand-alone valuation, and of the synergies ranked by ease of achievement. We often prevent clients from over-paying for targets and eating up all the value creation potential of the union.

Performing commercial due diligence

Alongside the client team and other advisors, we take an active part in the due diligence process playing a leading role in the review of the industrial/commercial capabilities of the transaction partner. We base our due diligence evaluations on the compilation of a joint industrial plan firmly embedded in the strategy and performance aspirations of the companies involved.

Providing "front-to-end" negotiation support

We sit next to top management throughout the transaction execution phase, orchestrating the process, coordinating the work of other advisors and providing senior counsel on negotiation tactics. As negotiations unfold, we review our value creation estimates providing the client with a fact-based map of the value-at-risk associated with specific "trading chips"

Designing the corporate governance rules and mechanisms

In the context of transactions that change the corporation materially (e.g., merger of equals), we help clients redesign their governance principles, mechanisms and infrastructure. Our approach is based on systematic mediation of internal and market requirements; in close cooperation with the top management team, we engineer solutions that make companies at the same time transparent to the market and managerially reactive.

Preparing the "equity story" of the transaction for the public market scrutiny

Virtually all of our clients are exposed to the scrutiny of the financial community (investors, analysts and market authorities). When they decide to engage in a transaction, we assist them in presenting the union to the market highlighting the strategic rationale, the growth prospects, the profitability enhancement, and the value upside associated with it.

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