Case study: Investigation - acquisition feasibility

The government of a middle-eastern state, wished to dispose of its controlling interest in a regional international clearing bank operating primarily within its own borders although also with branches located at major commercial centres in five other states, London and New York.  Prospective acquirers were invited to bid within a strict timetable and framework.  Acquirers also had to demonstate their suitability and financial capacity to operate the bank.

Retained by a prospective acquirer to undertake a preliminary review and feasibility study based upon which a decision would be made as to whether to put forward an offer for the bank.

Completed assignment reporting to client on the bank’s financial position and the key issues to be addressed when mounting a bid.  Advised and assisted the client put in their bid which was subsequently accepted.

Work included: -

• Conducting a preliminary investigation in the data room at the bank’s head office;

• Interviewing senior officials at the bank;

• Advising the client on valuation issues including conducting industry research;

• Formulating and submitting a bid conforming to the bidding rules; and

• Following achieving preferred bidder status, leading outline negotiations with the vendor leading to an agreed offer.

The bank was withdrawn from sale by the government prior to completion for political reasons.