Cross border ma panel presentation


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Cross border ma panel presentation

  1. 1. Cross-Border M&A Panel <ul><li>With the decline of the high-leverage megadeal, cross border dealmakers look to the mid-market for strategic targets. </li></ul>
  2. 2. Cross border M&A presents great challenges along with opportunity . . .
  3. 3. Four areas that are often overlooked but which are vital to the success of the transaction . . .
  4. 4. Culture . . . . . . both business and national
  5. 5. <ul><ul><li>The importance of leadership and culture </li></ul></ul><ul><ul><li>in cross-border M&A </li></ul></ul><ul><ul><li>• Main challenges for foreign M&A </li></ul></ul><ul><ul><li>Drivers & Expectations </li></ul></ul><ul><ul><li>• Why is cultural integration such a big challenge? </li></ul></ul><ul><ul><li>Pre-transaction challenges </li></ul></ul><ul><ul><li>Transaction challenges </li></ul></ul><ul><ul><li>Post-transaction challenges </li></ul></ul><ul><ul><li>• Keys to successful cross-border transactions </li></ul></ul>
  6. 6. M&A Culture and Best Practice <ul><li>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: </li></ul><ul><ul><li>Knowledge of key industries; </li></ul></ul><ul><ul><li>Access to pillars of business community leaders; </li></ul></ul><ul><ul><li>Knowledge of large and mid‐sized companies; </li></ul></ul><ul><ul><li>Relationships with local professionals (lawyers, accountants). </li></ul></ul>
  7. 7. Local Economy <ul><li>. . . for example, currency fluctuations </li></ul>
  8. 8. Overcoming the disadvantages of long distance acquisitions
  9. 9. . . . which are often longer than in the US Time horizons . . .
  10. 10. Local Economy Culture Long Distance Time Horizons
  11. 11. AM&AA Winter Conference Cross Border Mergers & Acquisitions David M. Lonsdale President &Managing Director
  12. 12. Cross Border M&A - Overview <ul><li>The “Middle Market” is still active. </li></ul><ul><li>Multiples are falling. </li></ul><ul><li>Leverage is lower. </li></ul><ul><li>The US Dollar is still weak. </li></ul><ul><li>US is the largest economy in the world. </li></ul><ul><li>There are Attractive Investment Opportunities for overseas Acquirers </li></ul>
  13. 13. Cross Border M&A - Industries <ul><li>Growth industries: </li></ul><ul><ul><li>Infrastructure – rebuilding the US </li></ul></ul><ul><ul><li>Healthcare – assisted living, care for elderly </li></ul></ul><ul><ul><li>Alternate Energy – Wind & Solar Power </li></ul></ul><ul><ul><li>Oil & Gas Services </li></ul></ul><ul><li>Distressed Industries: </li></ul><ul><ul><li>Retail </li></ul></ul><ul><ul><li>Housing </li></ul></ul><ul><ul><li>Level 2 </li></ul></ul><ul><ul><ul><li>Level 3 </li></ul></ul></ul>
  14. 14. Cross Border M&A - Examples <ul><li>Oil & Gas Services UK </li></ul><ul><li>Alternate Energy Spain </li></ul><ul><li>Infrastructure France </li></ul><ul><li>Infrastructure Israel </li></ul>
  15. 15. AM&AA Winter Conference Cross Border Mergers & Acquisitions David M. Lonsdale President &Managing Director
  16. 16. Cross Border M&A Panel January 2009 Orlando, Florida
  17. 17. Services Offered
  18. 18. Overview
  19. 19. Mission Statement
  21. 21. Overview of GCC Economy Sharp fall in oil prices was unexpected; global slowdown has markedly reduced demand and OPEC has (and will likely) cut production in 2009
  22. 22. Importance of this in Cross Border Deals <ul><li>Long overdue correction especially in Dubai – leading to cautious spending </li></ul><ul><li>2009 Saudi Budget reveals planned deficit, however analysis shows this is manageable </li></ul><ul><li>Budget is supportive of infrastructure and private business, however it might take some time for investors to regain confidence </li></ul>
  23. 23. Selected Tombstones 2005 Advisory Valuation Manufacturing and Agricultural Industries 2005 Undisclosed Information Memorandum & Advisory Valuation Al Rajhi Chemical Industries USD 12.5 Million 2006 Al Banawi Industrial Group Private Placement Rights Issue 2005 $160,000,000 AlMawashi AlMukairish Co. 2007 Undisclosed Saudi Canadian Mining Service 2006 Undisclosed Private Placement & Advisory Valuation Madina Plastic Factory 2007 Undisclosed Private Placement Al Aton Steel Industry 2007 undisclosed Advisory Valuation & Information Memorandum Medina Industrial Investment Co 2005 Undisclosed 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. 2006 undisclosed Advisory Valuation Afrifco for Plastic Undisclosed 2006 Private Placement Ajwa Holding Co.
  24. 24. Selected Tombstones Consumer Goods and Retail Industries 2005 Undisclosed 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
  25. 25. Jabal Omar Project Al Massarah Group “Taif Hotel Project” Selected Tombstones Real Estate 2005 Undisclosed Business Advisory Bayt Alarab SAR 500 Million 2006 2005 Private Placement Makka International Market 2007 Undisclosed Advisory Valuation Sawary Group 2007 Undisclosed Securitization Zad Investment Co (Sultan Mall) 2007 Undisclosed Advisory Valuation Zad Investment Co (Sultan Mall) Undisclosed 2005 Information Memorandum Undisclosed 2007 Information Memorandum
  26. 26. Selected Tombstones Investments Arabian Marketing services Co Information Memorandum & Advisory Valuation Reda Investment & Development Group $74,667,000 2005 Global Investment Hose Zad Investment Co Union Franco Arabe D’Assurance Information Memorandum 2005 Undisclosed Capital Restructuring SAR 150 Million 2005 Information Memorandum Undisclosed 2006 Information Memorandum (Sell Side) Undisclosed 2007 General Advisory 2007 Undisclosed Turnaround/Restructuring Anaam Holding Group 2008 $294.000,000 Anaam International Holding Group
  27. 27. Selected Tombstones Health Care Services $17,580,000 2005 Private Placement (Sale to Strategic Investors) Magrabi Hospitals & Centers
  28. 28. Selected Tombstones Other Businesses and Industries Information Memorandum $160,000,000 2005 Jamal Abdullah Mohammad Ali Al Babbagh 2006 ECU- Hold NV OJAJ Company for Magnesium Al-Mataf Newspaper Wael F. Jamjoom Canadian Coffee Rakan H. Al Harthy Dove Project Advance Source Est Taxi Project Saddik & Mohamed Attar Co Belgium SAR 80 Million 2007 Advisory Valuation (Sell Side) Al Madina Press Advisory Valuation $19,067,000 2005 Advisory Valuation $ 40,000,000 SAR 648 Million 2005 Advisory Valuation & Information memorandum SAR 375 Million 2005 Advisory Valuation (Buy Side) USD 12.5 Million 2005 Information Memorandum Undisclosed 2005 Privet Placement Undisclosed 2007 General Advisory Undisclosed 2006 Information Memorandum Undisclosed 2007 General Advisory 2005 Undisclosed Advisory Valuation Holicibel 2007 Undisclosed Information Memorandum National Experimental Establishment (Mutawaffy HujjajSouth Asian Countries)
  29. 29. Selected Tombstones Merger Deals United Saudi Commercial Bank and Saudi Cairo Bank Business Valuation and Merger Advisory Al Magrabi Group Business Valuation and Merger Advisory Undisclosed 2000 Business Valuation and Merger Advisory Saudi American Bank and United Saudi Bank 2006 Undisclosed Business Valuation & Merger and Acquisition Dalah Hajj Transport Co
  30. 30. Contact us <ul><li>P.O. Box 24368 Jeddah 21446 Saudi Arabia Tel:   +966-2-657-3030 Fax:  +966-2-657-3366 </li></ul>Faisal Al Sayrafi CEO & Managing Director [email_address] Dina Suleiman [email_address]