Alexandre Pierantoni
Managing Director
Mergers and Acquisitions (M&A) Advisory
Sao Paulo
Unlocking Hidden Value: Kroll Doubles Client's Sale Price
Discover how Kroll’s team consisting of Valuation, M&A, Transfer Pricing, FI&I and legal experts, experienced in international transactions, revealed the true value of our client’s operation and negotiated a price two times higher than initially proposed.
The Challenge
The Challenge
Our client, an investment holding company in northern Brazil, with major retail operations and over 70 stores, faced a critical liquidity crunch from the pandemic. One of their key assets was a minority stake in Yamaha's local manufacturing subsidiary. To restructure their business strategy, divesting this stake became essential. However, Yamaha Motor do Brasil was already the controlling shareholder and the sole viable buyer for the minority interest.
Adding to the challenge, our client had attempted to directly sell its stake to Yamaha over the past five years but failed to secure a fair market valuation. With urgent liquidity needs, a divestment was now critical, yet Yamaha remained the only potential purchaser.
Kroll's Solution
Kroll's Solution
Kroll's transaction advisory team provided strategic exit counsel tailored to our client's unique situation. Through astute due diligence, we identified an optimal approach to maximize value from this complex deal. Our seasoned M&A guidance enabled our client to successfully divest the company stake to Yamaha at double their initial low-ball offer price, ensuring our client received fair market value. Leveraging deep transaction expertise, Kroll deftly navigated the complexities to complete this crucial deal efficiently within a reasonable timeline.
The Impact
The Impact
While Yamaha's opening bid valued the stake at just half of the final sale price, Kroll's multi-disciplinary team provided rigorous valuation arguments and technical analysis. Our M&A specialists, reinforced by Transfer Pricing experts, empowered Kroll to double the transaction value through robust negotiations with Yamaha and their advisors.
This comprehensive solution delivered a premium outcome for the client, with Kroll's collaborative expertise maximizing value uplift to far exceed initial expectations for this business-critical divestment.
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Corporate Finance and Restructuring
M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.
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