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New Zealand +64 9 304 0702
Evaluation of Local Markets and Industry
SDR conducts market research in Australia and New Zealand to assist our clients to evaluate the local industry from the perspective of their particular products or services. This information is invaluable to determine strategies to enter the local markets. Specific attention is paid to:
Status of the industry
• Levels of activity
• Volumes traded
• Value of the market
• Market share
• Major players in the market
• Regulatory environment
• Scope for expansion and market growth
Facilitating Partnerships
Where our clients desire a partnership with a local concern, SDR can assist with the following services.
• Identify suitable partners
• Research the position and market-position of potential partners
• Make the initial approaches
• Lead negotiations
• Assist in formulating agreements
• Draw up implementation plans
In certain circumstances, we can also act as the local representative for our client in their relationship with the new partner.
Establishing New Local Companies
SDR can assist clients wishing to establish a new company or office in Australasia with the following services.
Assistance with legal and registration procedures
• Identification and procurement of suitable premises
• Identification and recruitment of management staff
• Identification and hiring of personnel
• Finance arrangements
• Preparation of strategic plans
• Drawing up a business plan
Facilitating Mergers and Acquisitions
One of our key activities is to assist clients who wish to establish themselves in Australasia through merging with, or acquiring local concerns. We provide a range of services related to mergers and acquisitions.
SDR will identify suitable target companies in New Zealand or Australia. Preliminary research will be conducted on these companies, assessing their standing, market share, the health of their operations and their range of services or products. We will also make the initial contact with the target companies to assess their interest in a merger or acquisition.
Once a potential target for a merger or acquisition has been identified, SDR can facilitate or lead the negotiations between our client and the target company. Where required, we can act as the client’s representative in these negotiations.
This is often a traumatic period for the seller and in our experience a great deal of personal attention, empathy and support may be required. Given our international background, we are also very aware of cultural differences and sensitivities and the potential for misunderstanding and mistrust. Emphasis is therefore placed on building relationships and creating mutual understanding – to ensure the negotiation process is as smooth and efficient as possible.
Determining the value of a target company is one of the key activities for any M&A transaction. SDR can assist clients to do this efficiently by developing the necessary financial models to calculate the return on a proposed investment or transaction, the net present value and payback period.
We will conduct analyses to determine the sensitivity of the financial models to changes in key parameters or assumptions and the effect of different growth projections. If required, SDR can assist clients to estimate the local industry average cost of capital related to their specific activities or business.
Conducting due diligence studies on the financial, trading and legal aspects of a target company is equally an essential part of a merger or acquisition process. SDR assists in having these studies performed and analysing them for their potential impact on the proposed transaction.
Through our contacts with the local financial institutions and venture capitalists, SDR can assist clients in negotiations to obtain debt-funding of transactions.
The impact of debt will be built into the financial models to test the continued viability of a proposed transaction and to determine optimum gearing levels.
When agreement is reached on a transaction, SDR will assist clients in a number of ways, including:
• Preparing purchase agreements – LOI and SPA.
• Preparing documentation to ensure legal compliance.
• Company registration
• Preparing a detailed implementation plan
Once a new venture has been established, or a company acquired, there is often a need for significant further levels of support. SDR can assist with the following services.
• Preparation of strategic plans
• Drawing up a business plan
• Locate suitable management staff and personnel.
In certain instances our clients have requested us to have board representation during the transitional and implementation phases, to help ensure continuity and the success of the venture.