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ALTIOS' participation in COFOCE - Select USA Event

Picture - COFOCE SelectUSA

May 2024

Leon, Guanajuato

Kickoff Presentation: The U.S. Market Opportunities

On May 16, 2024, we presented the Expansion opportunities for your company in the U.S., inaugurating a day of activities dedicated to supporting Mexican entrepreneurs in their expansion into the United States. During the presentation, we shared effective strategies for entering the U.S. market. In addition, success stories of the consulting firm were presented, both nationally and in other countries of the Americas. These initiatives position ALTIOS as an essential guide for expansion processes, providing specialized business advisors support.

Collaboration with HERSAN

In collaboration with Leon-based HERSAN, a company specialized in road safety and signage, ALTIOS demonstrated the change of perspective it has promoted in Chambers of Commerce, the COFOCE (Commission for the Promotion of Foreign Trade), and other businessmen. HERSAN‘s excellent reputation enabled ALTIOS to participate in this event and seek new prospects interested in expansion and growth. This endorsement highlights ALTIOS’ ability to offer growth opportunities through various U.S. market entry strategies.

Experts insights and Networking Opportunities

During the event, Jorge Prats Cardona, Head of Advisory for the Americas, and Juan José Pérez Irigoyen, Project Manager for the Americas, engaged with businessmen and future prospects interested in expansion. They established contacts with various sectors representatives supporting Mexican companies entering the United States. Key contacts included Clarissa Bonilla, Mexico representative of SELECT – USA. ALTIOS maintains a close relationship with SelectUSA and regularly participates in its events. For the next event in New York, the ALTIOS U.S. team will also be present, reinforcing its commitment to the U.S. market.

Diverse Sectors, Unique Value

Entrepreneurs from diverse sectors, especially manufacturing and product innovation, approached ALTIOS. These companies recognized ALTIOS’ added value, standing out from government support and other consulting firms because of its representation in 22 countries, its multi-sector specialization, and a wide range of customized services.

ALTIOS’ participation in this event helped Mexican companies identify significant growth opportunities through highly specialized professionals in strategy and international expansion. This boosted ALTIOS’ regional recognition and highlighted its crucial role in one of Mexico’s key manufacturing and innovation zones. With its strong presence and expertise, ALTIOS remains an invaluable partner for companies looking to expand into the competitive U.S. market.

ALTIOS Group strengthens its services in the United Arab Emirates by acquiring Steering Advisory, a consulting firm in accounting & tax services in Dubai

Press Release – May 22nd, 2024

Strengthening presence in the UAE and the Middle East

  • ALTIOS Group announces the expansion of its activities in the United Arab Emirates and the Middle East by acquiring 100% stake Steering Advisory headquartered in Dubai. As a leading international consulting firm dedicated to international growth, ALTIOS Group pursues its expansion into the world’s largest markets and key regional hubs.

  • Steering Advisory was founded by two lawyers, Guillaume de Rocquigny and Florian Guais, in association with Nabile Sabbani. The company has currently 12 staff members and manages corporate and accounting services for more than 100 international businesses willing to expand their business in Middle East.
  • Altios Group set up an office in the UAE 4 years ago. This acquisition reinforces Altios Group’s activities in the country on a panel of services from Strategic Advisory to Operational Execution, including:
    • Market Entry & Expansion: Market research, Go-To-Market Strategy, Business Partnership & Growth
    • Global HR Solution: Recruitment, Payroll services, visa & HR advisory
    • Corporate Services: Company set-up, Domiciliation & Management of International Subsidiaries (accounting, financial reporting, payroll, compliance, tax…)
    • Crossborder Acquisition: Screening, Negotiation, Due-Diligence, Transaction, Post-Acquisition Integration
  • Steering will reinforce ALTIOS’ Set-up pillar (Corporate Services), part of the international business expansion, on a large range of services: company formation, local domiciliation, directorship, legal compliance, accounting, payroll and tax, supply chain, and distribution platform.

ALTIOS Group’s Testimonial

“ Thanks to the team from Steering Advisory joining our group, we now have greater expertise to support our clients and partners in the region. We firmly believe that the Middle East offer great potential for our clients. As well we are eager to assist Middle East ecosystem to be better connected through our global network.
Further regional expansion would be announced in the coming months. ”

Bruno Mascart,

Co-Founder & Partner

Steering Group’s Testimonials

” The combination of Steering Advisory and Altios brings together Altios’ international network and resources with Steering’s Middle Eastern knowledge and expertise. In a region with new growth areas driven by a desire to diversify the economy, Steering Advisory by Altios will thus be able, alongside the law firm Steering Legal, to assist more companies looking for a one-stop shop and local experience to support them in the regional expansion of their activities. ”

Guillaume de Rocquigny, Florian Guais,

Co-Founders & Partners

About ALTIOS: Created in 1991, Altios offers international market expansion solutions to Small and Mid-Cap companies. With 40 offices in 22 countries and nearly 750 employees, ALTIOS has supported more than 10,000 companies in their international growth to simplify foreign market entry and accelerate business growth.

Our services: Strategy, Market Development, International HR Solutions, Management of International Subsidiaries, Manufacturing Investment and External Growth.

Altios works very actively with international banks, investment funds and government agencies to support their Corporate clients internationally.

Our values: Listening, Agility, Team spirit, Entrepreneurship, Passion.

Learn more at www.altios.com, Follow us on Linkedin.

Media inquiries : Patrick Ferron, Managing Partner, Altios, p.ferron@altios.com

South East Asian Forum

South East Asian Forum - Illustration

December 4th, 2023

At the crossroads of the Indo-Pacific region, the Association of Southeast Asian Nations is today one of the main drivers of worldwide growth. The latter is being triggered by its domestic spending (670 million inhabitants), its industry (textile, electronics, the automotive sector…), and its opening up to international business.

Willing to promote the South East Asian region, the backbone of the Indo-Pacific region and source of worldwide growth, Business France is organizing for the first time in 5 years, in partnership with the French Senate, an economic forum on the South East Asian zone, on December 4th, 2023.

Only companies interested by the French products and services, or interested in creating partnership will be able to access to the event.
Any company aiming to sell or export products or services to French companies will be declined.

Here is the program of the South East Asian Forum:

8:15 –

8:45 –

9:20 –

10:10 –


10:55 –

11:45 –

12:25 –

13:45 –

14:45 –


15:30 –

15:45 to 19:00 –

Coffee and Greetings

Opening speeches

New economic trends and current business climate

Environmental risks and energy mix: the urgency of industry decarbonation

Agriculture and food security issues: more than 650 M people to feed

Uneven health systems: from chronic diseases to an ageing population

Networking Lunch

Colossal transport and logistic infrastructure needs

Innovation and e-solutions: key stimuli for growth and consumption in the South East Asian region

Closing remarks

B2B One-to-one Meetings

Are you interested in this forum?

Only companies interested by the French products and services, or interested in creating partnership will be able to access to the event.
Any company aiming to sell or export products or services to French companies will be declined.

Doing Business in France

doing business in france in 2023

A closer look at the French market

Why choose France as a business location?

Situated at the heart of Europe, with all European capitals just a few hours away, France is a veritable logistics hub for international companies.

In this article, discover the factors that make this country one of the most attractive destinations for doing business in 2023:

  • First of all, it’s the world’s sixth-largest GDP. With 68 million inhabitants, France has one of the highest market potentials.

  • Secondly, over the last ten years, France has been the leading country in Europe for attracting foreign investment. This represents 28,000 subsidiaries setting up in the country every year.

  • What’s more, it has remained Europe’s leading destination for FDI. With 1,259 projects announced, this economic powerhouse remains in first place, ahead of the United Kingdom (929 projects) and Germany (832 projects).

  • Last but not least, France benefited from a significant post-COVID-19 rebound, as the impact of the health crisis was greater in 2020 than the European average.

Doing business in France: key growth sectors

Over the past few decades, France has created some fifty competitiveness clusters that are at the heart of its economic development.

The main ones are: agro-technology, food and beverages, aeronautics and automotive, pharmaceuticals and biotechnology, renewable energies.

Food industry

France is a major player in the agricultural and agri-food sector, with a number of competitive advantages: a large market with quality products; a highly integrated logistics sector and a solid, modern distribution system; and an innovative agri-food market.

In addition, agricultural production accounts for 3.5% of France’s GDP.

Aeronautics and space

Automotive

As a world leader in aerospace, French aircraft and helicopters are an international benchmark.
The industry’s success is underpinned by strong cooperation between industry and government.
France is home to three innovation clusters: Aerospace Valley, ASTech Paris Region and SAFE Cluster.

France leads the EU in light electric vehicles.
The French government is launching a major automotive investment plan to support innovation and the development of autonomous and hybrid vehicles.

Healthcare

Chemistry industry

European leader for patent applications in the healthcare sector, illustrating France’s excellence in medical research and development.
The country is also world leader in publicly-supported vaccines.

With sales of 68.4 billion euros, the chemical industry is an essential component of the French economy.
With added value of €18.6 billion in 2020 (including active pharmaceutical ingredients), the chemical industry accounts for over 8% of the total added value of French manufacturing industry.

Several French holding companies, including the Minakem group, the Novacap group and the Arkema group, have diversified into the production of fine organic chemicals for the pharmaceutical, cosmetics and electronics industries.

Renewable energies

Multinationals have chosen France for its strong wind energy potential, access to marine renewables and solar energy portfolio.
French plants account for a third of Europe’s offshore wind energy capacity. With its immense coastline, France has a key role to play in this industry.

French President Emmanuel Macron has announced that France will have around 40 GW of offshore wind capacity by 2050.

Doing business in France successfully

When setting up a company in France, there are three important factors to consider:

  1. The first is to develop your local understanding of the market. This will enable you to define your go-to-market strategy.
  2. The second factor is to be local. You need to give priority to acquiring local subsidiaries or businesses. That way, you can take advantage of public and private opportunities.
  3. And the third is knowledge of French human resources regulations. It’s important to take environmental regulations into account to avoid product adaptation problems.

ALTIOS France supports you in your global expansion

If you’re ready to conquer the French market, you can count on our teams to support you in all your endeavors.

In fact, ALTIOS makes it easier for you to set up internationally, with local solutions for HR management and the subsidiary creation. We take care of all the administrative formalities involved in recruiting your employees and managing their salaries, as well as setting up and managing your local subsidiary.

We are involved in the day-to-day running of your structure, providing administrative, accounting, HR and tax services. These services enable you to reduce your costs and fixed overheads while benefiting from a professional, high-quality support structure, and all this with a single, committed partner at your side.

Here are three tips for success in France: the first is to think long-term. It takes two to three years to succeed in the French market, so strategy is essential.

Second, choose the right partner. In France, it's essential to know the market and define the right strategy to avoid regulatory problems.

And the third is to be a wine lover, perhaps, to be culturally in tune with your customers and partners!

ALTIOS France Managing Director
Doing Business in France

The aerospace industry in Mexico

mexico aerospace industry altios

August 2023

The Mexican aerospace industry has emerged as a force to be reckoned with on the global stage. With its strategic location, skilled workforce, and favorable business environment, Mexico has positioned itself as a key player in the aerospace sector.

As of 2021, Mexico stands as the 14th largest aerospace supplier worldwide, and its growth trajectory indicates a prosperous future for the industry. What opportunities in the years to come?

The aerospace industry in Mexico takes flight as a global contender

  • Looking ahead to 2025, the Mexican aerospace industry is expected to remain stable, with exports surpassing an impressive US $12 billion. This projection demonstrates the robustness and potential for continued growth within the sector.
  • The government’s commitment to promoting investment and creating a supportive ecosystem for aerospace companies has contributed to this positive outlook.
  • One of Mexico’s key strengths lies in its ability to attract foreign companies to its aerospace sector. Numerous international players have recognized the advantages of establishing a presence in Mexico, leveraging its skilled labor pool and competitive cost structure.
  • These foreign companies have become instrumental in driving the growth and expansion of the Mexican aerospace industry. Their investments have not only created job opportunities but have also stimulated the development of local suppliers, contributing to the overall growth of the sector.

Discover the key factors and statistics of the Mexican aerospace sector in our infographic:

aerospace industry mexio altios

Want to learn more?

Interested in Mexico and its other sectors? Check out our most recent article on Tech StartUps: Mexico, a land of opportunities

IT sector in Poland 2023: what opportunities for international companies?

poland it sector altios

August 2023

In 2023, the IT sector in Poland has been experiencing outstanding growth.

Also known as the “IT center of Europe”, the Polish market is home to the highest number of domestic IT companies in the continent. This can be confirmed by the enormous interest of international corporations in opening their branches and large centers of tech services in Poland.

In this article, ALTIOS’ experts share how foreign companies can seize great opportunities in the IT sector in Poland.

IT and software: the Polish market's driving force

The IT sector is responsible for generating 8-9% of the Polish GDP, while the share of software business is increasing.

The value of the market is around PLN 70-85 billion. Looking at the total revenue of companies (excluding micro entities), it can be estimated that the software and IT services sector alone accounts for approximately two-thirds of the entire market (about PLN 55 billion). This share is currently rising towards 70 %, which is typical for highly developed countries, where the demand for IT hardware is lower for the reason of high market saturation.

Following Clutch data, in Poland there are around 50,000 software companies. What an impressive number, considering that this economic sector is relatively new!

Different sized companies make up this market – from micro entities to branches of global corporation.

In 2022, Google has announced a huge investment coming in Warsaw. The company’s purchase of office buildings in the capital is a sign of team development, and engineering recruitment in Cracow.

Other big brands like Samsung and Intel have decided to locate their R&D centers in Poland.

Except for large players, Poland is home to many local, competitive software houses and game developers.

What’s interesting, there are two potential tech unicorns in Poland: Brainly and Booksy, which prove the entrepreneurial spirit of the country.

Investing in the IT sector in Poland: what are the advantages?

The main success factor for the industry is having highly skilled people. Poland appears at the top of all rankings that have the most talented programmers.

The COVID-19 pandemic has accelerated global digitalization process, which rebuild the plans for future – many so far traditional businesses were forced to start thinking about digital transformation or new digital channels.

In Poland, according to the 2021 DESI (Digital Economy and Society Index), Poland is still below the EU average in all categories. It is currently ranked as 24 out of 27 EU countries, while performing better in connectivity (21st position) and digital public services (22nd position).

IT sector poland altios

The low DESI ranking is due to the insufficient integration of technologies in companies. While companies understand the importance of digital transformation in their organizations, most of them do not plan to increase investments in this area, in the coming months. In the future, country market development will be driven by the digitization strategies of the public, business sectors, and the need to invest in labor-saving or productivity maximizing solutions.

What challenges when exploring the Polish IT industry?

Among the barriers to the industry’s development, following issues could be pointed:

  • rising labor costs and talent draining, still moderately advantageous structure of the economy (relatively high share of simple processes and less advanced industries);
  • low awareness of the benefits resulting from IT investments in the SME sector (what could be changed by pandemic situation);
  • companies’ capital shortages.

In 2021, the number of M&A transactions in Poland hit a record high of 329, and a big part of them was in IT/tech sector (around 30%).

In 2022, despite Ukraine War and economic situation, other acquisitions on the tech market could take place, like French group Hardis’s acquisition of Polish Cloudity. On the other hand, Polish tech companies were also active in foreign acquisitions – like Blik’s choice to acquire Viamo, or Vercom’s acquisition of American MailerLite.

There is also visible growing interest in acquisition of cybers security companies.

More opportunities

The IT sector in Poland offer countless opportunitied for international companies looking to invest or expand. In fact, Poland is the:

  • 1st country in CEE (13th globally) by smartphone penetration
  • Cheapest mobile data in CEE (USD 0.7 per 1GB)
  • 2nd fastest growing European market for Revolut
  • 90% of card payments in Poland are contactless

Our teams in Warsaw and Cracow can enlighten you further on this attractive sector, and support you through all the steps of your expansion. Book an appointment with one of our experts to discover our personalized offer.

Want to learn more?

If you’re looking for more insights on the Polish marker, read our most recent article on the subject: What to know about Poland in 2023

SPS

ALTIOS helps SPS expand their reach into the Asian market

When you’re alone and far away you really need local support and good advice, especially with contracting and navigating complex visa issues. I’m very glad to have the support of ALTIOS.

Stéphane Livet
VP Sales Asia, SPS IN Group
Challenge
  • A small company based in the south of France, SPS was ready to expand sales of their contactless payment technology into Asia by opening an office in Singapore.
  • With no knowledge of the Asian market or local presence, they needed help in the administrative tasks of setting up an entity, as well as recruitment of a new team.
Solution
  • ALTIOS supported SPS in the administration, contracting and bureaucratic liaison necessary to set up an entity in Singapore.
  • ALTIOS continues to manage the bookkeeping, payroll and administrative tasks of the Singapore entity, which has now grown to include the Asian operations of IN Groupe, the company that acquired SPS in 2018.
Results
  • With the entity established in Singapore in 2014, SPS has continued to grow in the APAC region, with local sales representatives now in place in Indonesia and Hong Kong. ALTIOS’ Asia footprint, with offices in Hong Kong, India and Singapore, has been instrumental in helping SPS navigate recruitment – especially dealing with complex visa issues.

Discover more on SPS

Company Profile

Headquarters: Rousset, France

Turnover: € 112 M (2021)

Sector: Manufacturing of computer, electronic and optical products

Expertise: Design, manufacture and marketing of electronic modules on flexible supports, smart cards, multi-component contact and contactless cards, and hardwares for electronics.

sps

ALTIOS Corporate Finance supports Susty Wastes Solutions in joining forces with Polemecanic Group

Press Release – June 23th, 2023

Strengthening the position in Poland and France

  • In April 2023, the shareholders of Susty Wastes Solutions, a French company offering design and construction services for sorting lines for selective waste collection, and the shareholders of Polmecanic Group, a Polish group of companies specializing in the production, installation and service of waste recycling facilities, decided to merge their operations.
  • The newly formed SWS-PG group comprises 12 companies in France, Belgium, Germany and Poland, and a team of 300 specialists offering complete vertical integration of plant operation for selective waste collection, as well as, among others, the assembly of steel structures, modernization of industrial equipment and relocation of equipment and production lines.
  • The decision to join forces, a result of many years of successful cooperation between Susty Wastes Solutions and Polmecanic Group, will allow to fully exploit the synergies existing between the companies, and thus to further strengthen the SWS-PG group’s position in the European market.

Transaction supported by ALTIOS Corporate Finance

  • ALTIOS Poland’s Corporate Finance Department advised Susty Wastes Solutions on the transaction for the purchase of Polmecanic Group shares.
  • ALTIOS’ role was to prepare, in cooperation with the sellers’ advisors, the transaction documentation in accordance with the parties’ agreements and the requirements of Polish law.

Susty Wastes Solutions' testimonial

We are proud of this wonderful development and of the opportunities which are opening for all of us. The relationship we built several years ago between Poland and France was already strong, and now it’s even stronger!
We’re excited to be able to unite our values, share our experiences and multiply our offers to serve our present and future customers even better.
We would like to thank our bank and legal partners for their trust, and also ALTIOS for its precious assistance.

Georges CHALAIN, General Director of Susty Wastes Solutions

Polmecanic Group's testimonial

It’s very satisfying to be able to bring two dynamic groups together in this way. On the one hand, it seems to me a natural consequence of our successful cooperation. After all, we have so much in common: business approaches, values and aspirations. We also complete each other very well in terms of branch competence.
On the other hand, I believe that there are new business opportunities, new paths of development ahead of us as well as new opportunities to exchange experiences and increase knowledge.
Therefore, I am not only proud of what we have achieved so far, but also very excited thinking about future challenges.


Adam Bokwa, CEO of Polmecanic Group

ALTIOS Corporate Finance's testimonial

“It is a true pleasure to support a transaction made between people who have known each other and worked together for years; a transaction that is another step in the development of specialized entities operating in the essential and rapidly growing waste recycling market in Europe, especially since it involves companies from countries that are particularly close to me: France and Poland. ”

Zdzislaw Dominik, Vice-president of ALTIOS Polska

Participants

Buyer’s advisors:

  • Legal: Pierre-Yves MILIN (attorney, Cabinet Milin)
  • Altios Corporate Finance: Zdzislaw Roland DOMINIK (Vice-president Altios Poland) / Magdalena FRAILE (Senior Project Manager) / Anne AUDRAIN (International Account Manager) / Piotr NOWORYTA (Senior Legal Adviser)

Sellers’ advisors:

  • Legal: Katarzyna WILAMOWSKA (attorney-at-law)
    Łukasz KRAWCZYK (attorney-at-law, SKR Stelmach Krawczyk Romanow Legal Office)

ALTIOS: Since 1991, the group offers international market expansion solutions to companies operating and investing internationally. ALTIOS supports you with everything you need, from nurturing your growth strategy to your international acceleration by entering dynamic markets, to set up and operate your foreign branch with everyday compliance administration – HR, accounting, tax… – through to strategic cross-border acquisition.

www.altios.com


Contact Press : Alexandre Kaplan, M&A Director, a.kaplan@altios.com

Post Globalization: Hong Kong - Opportunities and Challenges

May 24th, 2023

10:00 – 11:00 (MEZ)

webinar hong kong altios

You can now watch the webinar replay by clicking here.

Since 2019, the world has changed in ways none of us could have predicted. Protests in Hong Kong, the pandemic, and the war in Ukraine are increasingly shifting and regionalizing the balance of economic power.

The world is changing and Hong Kong with it. What role will Hong Kong play in this regionalized world? Is there still a difference between doing business in Hong Kong and Shanghai or Shenzhen? Or is Hong Kong more than ever an important gateway to China, where it is increasingly difficult for Western companies to do business. Is it possible that Singapore will replace Hong Kong as the most important regional international hub in the long term?

Target group: Managing directors and board members with an interest in Hong Kong as a business location, persons responsible for Hong Kong and/or China business, specialists and executives (market development, expatriation, export, finance)

Event language: English

This webinar includes :

  • Hong Kong and its motto: One country – two systems.
  • Hong Kong’s uniqueness compared to China and Singapore
  • Hong Kong as part of the GBA
  • Free trade agreements – an overview
  • Market entry strategies – Which is the “right” one for your company?
  • Case studies – How companies do business in Hong Kong

Experts

Photo d'Irène

As the Business Manager of Altios Greater China, Irene Tchedre is responsible for assisting foreign companies to establish, maintain and expand business activities in Hong Kong/China’s complex environment. With more than 10 years of professional experience, she has extensive knowledge and experience in dealing with the challenges and peculiarities of the Chinese market.

Irene Tchedre has a deep understanding of Chinese business culture and can help her clients build successful relationships with local partners and implement long-term business goals.

photo de marius

Marius Heickmann has more than 7 years of experience in internationalization consulting and cross-border project management. He successfully supports companies based in the DACH region (Germany, Austria, Switzerland) in their global market expansion. As Business Development Manager at Maier Vidorno Altios, he is based in Cologne and is part of our outbound team there.

At the University of Bonn, Heickmann successfully completed his studies in Asian Studies with a focus on business & society, especially in India and Southeast Asia. Every year he accompanies about 30 projects of our customers from various industries such as pharmaceuticals, medical technology, automotive, chemistry, mechanical engineering, electronics and automation.

KC-Lam

As Head of Consulate and Chamber Engagement, Transport and Industrial at InvestHK, KC Lam is responsible for building networks with foreign consulates and chambers in Hong Kong. His team provides assistance and various services to the foreign business community in the city, helping to attract foreign direct investment.

Prior to joining InvestHK, KC Lam worked in the field of environmental technology and in commercial and technical roles at a major airline in Hong Kong. He holds a Bachelor’s degree in Aerospace Engineering from the University of Bristol and a Master’s degree in Manufacturing Engineering from Cranfield University.

Hannes Farlock has spent most of his professional career in international markets, promoting and developing business relationships. Prior to his role in Hong Kong, he was Managing Director of DEinternational at the German-Russian Chamber of Commerce Abroad in Moscow.

Prior to joining the global network of German Chambers of Commerce Abroad (AHK), Mr. Farlock worked in Belarus, Ukraine and Germany, including business development in the IT and start-up sectors, as well as in the former TACIS program of the European Commission.

Mr. Farlock studied management in Austria and Lithuania and Russian and Eurasian studies in Saint Petersburg, Russia. He is currently enrolled in an Executive Diploma program in Organizational Leadership at Oxford University’s Saïd Business School.

Event partners

AHK partner logo

German Industry and Commerce Ltd (GIC) is the delegation of German business in Hong Kong. Since 1987, GIC has been the first point of contact for German companies with business interests in Hong Kong and the region, as well as for local companies with investment or expansion plans in Germany. As one of 150 AHK locations worldwide under the umbrella of the German Chamber of Industry and Commerce (DIHK), GIC has a mandate from the German government to promote German foreign trade, together with the German Consulate General and the representative office of Germany Trade & Invest. GIC is private sector oriented, neutral and independent.

InvestHK‘s vision is to strengthen Hong Kong’s status as a leading international business hub in Asia. InvestHK’s mission is to attract and retain foreign direct investment, which is of strategic importance to Hong Kong’s economic development.

The 5 key steps to prepare your M&A operation in Germany

M&A germany 5 key

April 2023

External growth is one of the quickest ways, for SMEs to grow their business and expand their operations (activities, services, clients) abroad. However, a Merger & Acquisition process faces many challenges, especially in an international
context.

5 prerequisites are critical, before beginning your M&A operation in Germany.

Integrate external growth into your development strategy

External VS Organic growth: Define the best way to enter a new country, new market. External growth strategies (M&A or Strategic alliances), can be quicker in most cases, but preliminary analysis is mandatory before launching a full process. It can lead to value loss if not done correctly.

Verify your financing capacity (level of Enterprise Value) to assess the size of the target you can aim for.

Appoint a Project Manager

Name a Project Manager within your organization that will link all parties involved in the M&A operation (advisors, targets, banks, etc.)

Depending on the size of the project, define the scope of responsibilities of each member involved in the project.

In Germany: It may take some time to get initial feedback from the German targets, but once the interest of a target has been validated, it is important to be reactive and to be able to introduce the same people to the Germans, to ensure a good follow-up throughout the mission.

Define the ideal target

  • Define the company size (employee, revenue/EBITDA, balance sheet.)
  • Define the activity/services/products/sectors/ clients
  • Define the geographical scope (region, country)
  • Define the other criteria (type of ownership, type of acquisition, type of clients, management team, etc.)
target

Adapt to cultural differences

/ Approach the potential targets: The first approach in the M&A operation is always complicated as we do not know if the targets are ready to sell their companies or open to sharing information. The idea is to create the opportunity. Each approach must adapt to cultural specificities to maximize the chances of opening the door and getting information.

In Germany: Our local teams approach the targets directly by phone and organize the first meeting in German to discuss your company and your objectives and those of the targets. The first approach in German allows to reassure the interlocutors a little and allows first fluid exchanges.

/ Negotiation phase and the M&A process: Adapting to cultural differences is key: respect the agenda/calendar, communicate clearly, do not rush, and communicate in advance, if changes any.

In Germany especially: Your presentations and arguments have to be explicit. well-founded, short, straight to the point, instructive and technical during exchanges. The relationship is not limited to meetings: make sure you stick to the schedule and if you have to cancel or postpone a meeting or a call, let your contact know well in advance and agree on a new date.

Specify the schedule & prepare your documents

Define the planning of the M&A operation for the main steps: Duration of each step (2 months for the screening, 2-3 months for the approach phase, 4 months for Due Diligence, etc.). It’s mandatory to be structured and plan.

Adapt to the agenda/calendar of each target (might be quicker than expected if the target is in an active sale process/longer if the target is initially not ready to sell).

A M&A operation requires a large number of documents. You need to prepare the following:

  • The Letter of Intent (LOI): A document outlining an agreement between two or more parties before the agreement is finalized.
  • Data rooms (online data room): running a data room process requires gathering confidential documents that third parties (lawyers, investment banks, chartered accountants, etc.) may then access more easily during the process
  • Due diligence: the process through which a potential acquirer evaluates a target company or its assets for an acquisition. The relevant areas of concern may include the financial, legal, labor, tax, IT, environment, and market/commercial situation of the company.
  • After due diligence is completed, the parties may proceed to draw up a Definitive Agreement, known as a “merger
    agreement,” “share purchase agreement” or “asset purchase agreement” depending on the structure of the transaction.

ALTIOS teams can help you succeed your M&A operations, as well as guide you through the entire subsidiary set-up process. Book an appointment with one of our experts to discover our personalized offer.

M&A germany 5 key

Looking to move into Germany?