Acquisition of a Competitor to Accelerate Market Consolidation
A Swiss-based SME operating in the industrial services sector identified a strategic opportunity to acquire a long-standing competitor.
The acquisition would enable market consolidation, operational synergies, geographic expansion, and cost optimisation, but required careful financial structuring and transaction support.
Although the target company was profitable, the transaction involved complex valuation, acquisition financing, and ownership structuring challenges that went beyond a standard bank-led process.
Key Challenges
- Structuring an acquisition financing solution combining debt and equity
- Determining a fair valuation aligned with future synergies
- Managing transaction risk and due diligence efficiently
- Negotiating purchase terms while preserving liquidity
- Coordinating multiple stakeholders (shareholders, lenders, advisors)
- Ensuring confidentiality throughout the M&A process
PrestaFlex M&A Support Approach
PrestaFlex acted as financial structuring advisor and transaction support partner, guiding the client through every phase of the M&A process.
Key actions included:
- Financial and strategic analysis of the acquisition target
- Valuation modelling reflecting synergies and growth potential
- Structuring a hybrid acquisition financing solution combining senior debt, equity, and vendor financing
- Coordinating lenders and equity partners with experience in acquisition financing
- Supporting negotiations on price, earn-out mechanisms, and payment terms
- Aligning transaction structure with post-acquisition integration goals
PrestaFlex worked closely with the client’s legal and tax advisors to ensure a seamless and compliant transaction process.
Outcome
- Successful acquisition completed within the planned timeline
- Optimised acquisition financing, preserving liquidity
- Improved market position and expanded customer base
- Operational synergies realised through cost efficiencies
- Strengthened long-term growth and competitiveness
The transaction enabled the client to accelerate expansion through external growth while maintaining financial stability.
Why M&A Support Was Critical
This case demonstrates how professional M&A support goes far beyond sourcing capital:
- It ensures the proper acquisition structure
- It balances risk, valuation, and financing
- It protects the buyer’s long-term financial health
- It enables smoother post-transaction integration
For SMEs and mid-market companies, structured M&A advisory is often the difference between a risky deal and a successful strategic acquisition.
Key Takeaway for Business Owners & Management Teams
M&A transactions are complex by nature.
With expert M&A support, acquisition financing, and transaction structuring, companies can pursue external growth opportunities confidently — while preserving liquidity, control, and strategic focus.
