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Transaction Advisory Services | Divestiture Advisory Services
Valuation Services | Strategic Consulting Services

Divestiture Advisory Services

Services Calcap provides on Divestiture assignments can vary and are tailored based on clients specific goals and needs. For example, a client may have entered exclusive negotiations with a prospective purchaser and engage Calcap solely to assist in finalizing negotiations on price. Alternatively, Calcap's mandate may encompass everything from a market price analysis, to the search for buyers, to development of detailed information packages, to staging of the sale process, to final negotiations and closing.

The following is a summary of the key elements and considerations comprising Calcap's Divestiture Advisory Service.

Corporate Research : the success of our efforts will depend to a large degree on gaining detailed understanding of the client's business. Our objective is to pinpoint a company's distinctive abilities (i.e. market leading products, technologies or processes) as these factors are often the key to gaining the interest of buyers best positioned to realize strategic or synergistic benefits from an acquisition;

Industry Research: Calcap employs what it believes to be one of the most effective research capabilities of any company serving the market for privately-held businesses. We believe that understanding the industry in which the client's business competes will shape how the divestiture process unfolds;

Identification of Buyers : how the market is canvassed for buyers will be an important determinant of the success of the divestiture. Utilizing intelligence gathered through our corporate and industry review, we then identify those buyers best positioned to capitalize on a company's market position and develop a strategy aimed at maximizing the proceeds realized;

Information Packaging: how a business is presented to the market is critical to creating an appropriate perception of its potential. Private companies often suffer from an inability to fully capitalize on their inherent strengths, usually due to a lack of resources. Calcap strives to illustrate the untapped potential existing within its clients business to ensure that the underlying value potential is clearly evident;

Confidentiality:   Calcap understands the realm of private business and the importance of confidentiality to business owners. Every step of the process is governed by an overriding concern for protecting confidentiality. We have developed systems that minimize the likelihood of breaches of confidentiality in the market. We are able to effectively vet requests for information and know how and when certain types of information should be disclosed;

Negotiations and Structuring : over the years C alcap has successfully represented clients in negotiations with both financial and strategic parties including such major corporations as Telus, Southam, Moore Corporation, Apple Canada Inc., Philip Environmental, Thomson Newspapers, Saputo and Nestle. We believe that our ability to creatively bridge the differing perceptions of buyers and sellers is a core competence.

Acquisition Advisory Services Calcap's Acquisition Advisory Service provides corporations with assistance in the development and execution of corporate growth strategies. Calcap's transaction experience and our acumen in transaction process and pricing enable us to establish immediate credibility in the eyes of target company principals. We believe that the ability to establish rapport is critical in creating an atmosphere conducive to negotiations.

For each assignment, Calcap works with the client to develop an Acquisition Work Plan which serves as a guide for the process by defining the scope of work and responsibilities of Calcap under the engagement as follows:

Engagement Summary : this defines the scope of Calcap's role in the process, the goals and objectives of the acquirer, the nature of the targets being sought, key acquisition criteria and transaction structuring objectives;

Process Management : this sets out the anticipated timing for the various stages in the acquisition process from initial communication with a target to finalization of the purchase and sale agreement;

Communication Strategy : communications with target companies is carefully scripted to ensure that we convey an accurate and consistent message regarding the acquirer's objectives and expectations. This helps ensure that only qualified targets advance for consideration;

Pricing Strategy : Calcap will work with the client to establish agreed upon transaction pricing parameters for purposes of 'off the record' discussions with potential acquisition candidates. It is our view that the ability to engage targets in a pricing dialogue creates rapport and provides an important source of market intelligence;

Documentation : prior to making an approach, Calcap will develop (subject to the clients' approval) a written script for initial introductions; an Expression of Interest letter; an acceptable confidentiality agreement and a standard information request; and,

Reporting Format : at agreed intervals, Calcap will report to the client with respect to its progress on the mandate. These reports typically include market intelligence, a synopsis of recent discussions and details as to 'next steps' to be taken.

Fees for Calcap's Transaction Advisory Services are established to meet the specifics of a given situation and tailored to meet clients specific needs. We accept only exclusive assignments, often based on a combined work fee and contingency arrangement. We work to structure our contingency fees in a manner that will assure the client that our interests are aligned with theirs.