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Cross-Border M&A Panel With the decline of the high-leverage megadeal, cross border dealmakers look to the mid- market for strategic targets.
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Cross-Border M&A Panel
With the decline of the high-leverage megadeal, cross border dealmakers look to the mid-market for strategic targets.
Cross border M&A presents great challenges along with opportunity . . .
Four areas that are often overlooked but which are vital to the success of the transaction . . .
Culture . . .
. . . both business and national
The importance of leadership and culture
in cross-border M&A
• Main challenges for foreign M&ADrivers & Expectations
• Why is cultural integration such a big challenge?
Pre-transaction challengesTransaction challengesPost-transaction challenges
• Keys to successful cross-border transactions
"Excellence through experience."
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M&A Culture and Best Practice
Leading firms have territorial reputability based on their knowledge, expertise, ability to retain clients and local presence in middle market M&A. We set our competitive edge though:– Knowledge of key industries;– Access to pillars of business community leaders;– Knowledge of large and mid‐sized companies;– Relationships with local professionals (lawyers,
accountants).
Local Economy
. . . for example, currency fluctuations
Overcoming the disadvantages of long distance acquisitions
. . . which are often longer than in the US
Time horizons . . .
Local EconomyCulture
Long Distance Time Horizons
Dallas / New York / Tulsa / Shanghai / Tel Aviv / Vancouver, BC
Dallas / New York / Minneapolis/St. Paul
Shanghai / Tel Aviv / Vancouver, BC
AM&AA Winter ConferenceCross Border Mergers & Acquisitions
David M. LonsdalePresident &Managing Director
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Cross Border M&A - Overview
The “Middle Market” is still active. Multiples are falling. Leverage is lower. The US Dollar is still weak. US is the largest economy in the world. There are Attractive Investment
Opportunities for overseas Acquirers
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Cross Border M&A - Industries
Growth industries:• Infrastructure – rebuilding the US • Healthcare – assisted living, care for elderly• Alternate Energy – Wind & Solar Power• Oil & Gas Services
Distressed Industries:• Retail• Housing
• Level 2Level 3
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Cross Border M&A - Examples
Oil & Gas Services UK Alternate Energy Spain Infrastructure France Infrastructure Israel
Dallas / New York / Tulsa / Shanghai / Tel Aviv / Vancouver, BC
Dallas / New York / Minneapolis/St. Paul
Shanghai / Tel Aviv / Vancouver, BC
AM&AA Winter ConferenceCross Border Mergers & Acquisitions
David M. LonsdalePresident &Managing Director
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Cross Border M&A Panel
January 2009
Orlando, Florida
"Excellence through experience."
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Services Offered
"Excellence through experience."
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Overview
"Excellence through experience."
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Mission Statement
"Excellence through experience."
2020
FINANCIAL TRANSACTION HOUSE GROUPFTH SAUDI ARABIA
FTH EGYPT (under formation)
FTH DUBAI (under formation)
"Excellence through experience."
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Overview of GCC EconomyOPEC Basket ($/barrel)
0
20
40
60
80
100
120
140
1/2/1996 10/19/1998 8/2/2001 5/21/2004 2/27/2007
Sharp fall in oil prices was unexpected; global slowdown has markedly reduced demand and OPEC has (and will likely) cut production in 2009
"Excellence through experience."
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Importance of this in Cross Border Deals
• Long overdue correction especially in Dubai – leading to cautious spending
• 2009 Saudi Budget reveals planned deficit, however analysis shows this is manageable
• Budget is supportive of infrastructure and private business, however it might take some time for investors to regain confidence
"Excellence through experience."
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Selected Tombstones
2005Undisclosed
Information Memorandum&
Advisory Valuation
Al Rajhi Chemical Industries
USD 12.5 Million 2006
Al Banawi Industrial Group
Private PlacementRights Issue
2005$160,000,000
AlMawashi AlMukairish Co.
2007Undisclosed
Saudi Canadian Mining Service
2006Undisclosed
Private Placement &
Advisory Valuation
Madina Plastic Factory
2007Undisclosed
Private Placement
Al Aton Steel Industry
2007undisclosed
Advisory Valuation &
Information Memorandum
Medina Industrial Investment Co
2005Undisclosed
Valuation&
Private Placement
Saudi Canadian Mining Service
Gazan Agricultural Development Co
SAR 375 Million 2006
Rights Issue
SAR 150 Million 2006
Rights Issue
Saudi Fisheries Co.
SAR 648 Million 2007
Rights Issue
Saudi Advance Industries Co.
2006undisclosed
Advisory Valuation
Afrifco for Plastic
Undisclosed 2006
Private Placement
Ajwa Holding Co.
2005
Advisory Valuation
Manufacturing and Agricultural Industries
"Excellence through experience."
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2005Undisclosed
Advisory Valuation
Hussen Gazzaz & Co
SAR 57.5 Million 2006
Private Placement
SAR 2005
Al- Sawani Group
SAR 102 Million 2006
Private Placement
SAR 2006
Al Raya Foodstuff Est
Selected TombstonesConsumer Goods and Retail Industries
"Excellence through experience."
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2005Undisclosed
Business Advisory
Bayt Alarab
SAR 500 Million 20062005
Private Placement
Makka International Market
2007Undisclosed
Advisory Valuation
Sawary Group
2007Undisclosed
Securitization
Zad Investment Co (Sultan Mall)
2007Undisclosed
Advisory Valuation
Zad Investment Co (Sultan Mall)
Undisclosed 2005
Information Memorandum
Jabal Omar Project
Undisclosed 2007
Information Memorandum
Al Massarah Group “Taif Hotel Project”
Selected TombstonesReal Estate
"Excellence through experience."
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Selected TombstonesInvestments
SAR 150 Million 2005
Information Memorandum
Arabian Marketing services Co
Information Memorandum & Advisory Valuation
Reda Investment & Development Group
$74,667,000 2005 Undisclosed 2006
Information Memorandum
(Sell Side)
Global Investment Hose
Undisclosed 2007
General Advisory
Zad Investment CoUnion Franco Arabe
D’Assurance
Information Memorandum
2005Undisclosed 2007Undisclosed
Turnaround/Restructuring
Anaam Holding Group
2008$294.000,000
Anaam International Holding Group
Capital Restructuring
"Excellence through experience."
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Selected TombstonesHealth Care Services
$17,580,000 2005
Private Placement (Sale to Strategic Investors)
Magrabi Hospitals & Centers
"Excellence through experience."
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Selected TombstonesOther Businesses and Industries
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Advisory Valuation
$19,067,0002005
Advisory Valuation
$40,000,000
Information Memorandum
$160,000,000 2005
Jamal Abdullah Mohammad Ali Al Babbagh
SAR 648 Million 2005
Advisory Valuation & Information
memorandum
SAR 375 Million 2005
Advisory Valuation(Buy Side)
USD 12.5 Million 2005
Information Memorandum
2006
Undisclosed 2005
Privet Placement
ECU- Hold NVOJAJ Company for
Magnesium
Al-Mataf Newspaper
Wael F. Jamjoom Canadian Coffee
Undisclosed 2007
General Advisory
Rakan H. Al Harthy
Undisclosed 2006
Information Memorandum
Dove Project
Undisclosed 2007
General Advisory
Advance Source EstTaxi Project
Saddik & Mohamed Attar Co
2005Undisclosed
Advisory Valuation
Holicibel
Belgium
SAR 80 Million 2007
Advisory Valuation(Sell Side)
Al Madina Press
2007Undisclosed
Information Memorandum
National Experimental Establishment
(Mutawaffy HujjajSouth Asian Countries)
"Excellence through experience."
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Selected TombstonesMerger Deals
Undisclosed 2000
Business Valuation and
Merger Advisory
Saudi American Bankand
United Saudi Bank
United Saudi Commercial Bankand
Saudi Cairo Bank
Business Valuation and
Merger Advisory
2006Undisclosed
Business Valuation &
Merger and Acquisition
Dalah Hajj Transport Co
Al Magrabi Group
Business Valuation and
Merger Advisory
"Excellence through experience."
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Contact us
P.O. Box 24368Jeddah 21446Saudi ArabiaTel: +966-2-657-3030Fax: +966-2-657-3366www.fthgulf.com
Faisal Al Sayrafi
CEO & Managing Director
Dina Suleiman
