Acquisition of an OEM Parts Company for a European Client



The Client had been trying for a number of years to acquire the target company. Based on summary information provided by the Seller and on the Client’s industry intelligence, they believed the Seller’s options were limited. As a result, the Client made offer that was deemed too low and was subsequently eliminated from the sale process. At this stage, the Client approached AE Capital for assistance.


AE Capital Value Added

AE Capital was able to convince the Seller that the Client was a serious contender but had approached process from a European perspective. The Seller understood that with the involvement of AE Capital, the Client would be able to work within U.S. M&A framework.

AE Capital convinced the Seller to offer the Client preemptive access to management and facilities prior to submission of acceptable indicative price.
AE Capital recommended early involvement of larger number of the Client’s decision-makers in order to build internal consensus and outnumber “watchers” at facility.


Site visit, meetings with management and subsequent valuation analysis convinced the Client that asking price was reasonable (~2x original offer). Preemptive offer was submitted and accepted. Management aligning with the Client and supporting our bid.


Information drawn from management discussions and due diligence enabled AE Capital to negotiate close to 10% price reduction.