Acquisition Due Diligence and Hive Up

Client Objectives:

Mergers and acquisitions (M&A) often play a crucial role in driving growth, expanding market reach, and achieving strategic objectives. This magazine distributor, with a diverse portfolio of magazines and periodicals, sought to strengthen its market position and capitalise on emerging opportunities. To achieve this, the client embarked on an acquisition strategy and purchased a small distributor with additional channels. The project objectives were to:

• Conduct a comprehensive due diligence.
  The primary objective was to conduct a thorough due diligence on the company to assess its financial, operational, and legal aspects.
• Develop a hive up and integration plan.
  Upon successful completion of the due diligence process, the focus shifted to facilitating the hive-up process with the development of a comprehensive plan.
• Manage the complete process to completion.
  The ultimate goal was to ensure a seamless transition for both the acquired entity and the client’s organisation, minimising disruptions to business operations and maintaining customer satisfaction throughout the integration process.

Our approach:

The project commenced with a comprehensive review and analysis of the target company.

Financial, operational, legal, taxation and regulatory compliance checks were conducted to identify any potential liabilities that could impact the transaction’s success.

Upon completion of the due diligence and acquisition, the focus shifted to the hive-up process, whereby the acquired assets and liabilities were transferred to the client’s entity. This involved meticulous planning, coordination, and communication to ensure a smooth transition and minimise operational disruptions.

Key aspects that were considered:

• Harmonising financial reporting and accounting practices
• Transferring contracts, Intellectual property, assets, banking facilities
• Review and integration of IT systems
• Logistics and distribution management

Client Benefits:

• The acquisition enabled the client to expand its market reach and diversify its product portfolio, strengthening its competitive position in the publication distribution industry.
• The acquisition and integration process contributed to accelerated growth and enhanced value creation for the client and its stakeholders.