Foreign multinational looks to acquire US based finance company with a focus on investment grade credits

SITUATION

A Japanese multinational commercial equipment finance company wanted to acquire a strong US based Independent commercial finance company in a growth market with a focus on targeting investment grade credit transactions.

SOLUTION

The Alta Group had served this client in the past and knew its history, market position, and understood the cultural differences that would need to be aligned with the objectives of the target company. Alta worked closely with the client to understand the proposed financial and operating attributes that the target company should have. Then, Alta identified a short list of potential acquisition targets for the company to consider and shared the attributes and characteristics of each of the companies with the client. With the client’s approval, Alta reached out, on a confidential basis, to a few of the target companies identified to determine if the parties would have an interest in having introductory discussions for purposes of a potential acquisition. Through this process, the client narrowed the discussions down to one potential target company. Alta conducted a due diligence review on the targets business operations and financial performance and was able to identify areas of risk and opportunities for growth with our client. Based on our findings, we assisted our client in structuring the transaction and negotiating the terms of the transaction to the satisfaction of all parties.