Our client, a large auto components organization in India, wanted to evaluate the business and financials of three manufacturing plants in Germany, which were identified for sell-off by a large German auto components group.

Our client wanted to clearly understand the quality of customers, management and value in the business. The sellers set up a data room in Frankfurt for five days with restrictions on copying the data. In addition, the documents were written in German and required an understanding of local regulations.

We assembled a team with extensive experience in carrying out mergers and acquisitions (M&A) due diligence reviews and paired them with local experts from Germany. This team met with our client to understand the project requirements.

Protiviti’s professionals worked against strict timelines to evaluate the business, financials and the state of compliance, with the goal of providing the client with information to make an acquisition decision at a realistic price with acceptable terms and conditions

As a result of our analysis, the client was able to make value adjustments of approximately €19 million (US$30 million). This was achieved through analysis of the following areas:

1. Customers and profitability. Our professionals identified products and customers with negative margins and determined the profitability post-sell-off, considering the dependence and duration of customer relationships and the achievability of various scenarios.    
2. Cash requirements. We identified and defined the future cash requirements needed for capital expenditures and working capital.
3. Integration challenges and benefits. Our team estimated costs and benefits of integration issues and available synergies if the proposed transaction was consummated successfully.
4. Legal and tax compliance. We coordinated the legal and tax compliance review for the transaction, which led to significant savings of time and effort by the client on the transaction.

How We Help Companies Succeed

M&A transactions are among the most complex activities a business can undertake – even more so in today’s global market where information in certain economies is not as transparent. We help clients assess key financial, commercial and other issues facing the business and the drivers behind maintainable profits and cash flows. We can provide an investigative analysis of a business, typically including backgrounds, results/projections, cash flows, market analysis, management information, commercial and operational issues, and systems and controls.

​Mritunjay Kapur
Managing Director
+91.9810438888
mritunjay.kapur@protiviti.co.in

Protiviti (www.protiviti.com) is a global business consulting and internal audit firm composed of experts specializing in risk, advisory and transaction services. The firm helps solve problems in finance and transactions, operations, technology, litigation, governance, risk, and compliance. Protiviti’s highly trained, results-oriented professionals provide a unique perspective on a wide range of critical business issues for clients in the Americas, Asia-Pacific, Europe and the Middle East.

Protiviti has more than 60 locations worldwide and is a wholly owned subsidiary of Robert Half International Inc.
(NYSE symbol: RHI). Founded in 1948, Robert Half International is a member of the S&P 500 index.