Supporting a European Tech Company in a Strategic M&A Deal

A European-based tech company approached Neofyn with the objective of selling specific

assets before the end of the year. However, recent regulatory changes added complexity to

the process, requiring the assets to be sold in a different jurisdiction, such as the USA. The

client faced tight deadlines and significant challenges, making it essential to find the right

buyer and ensure a seamless transaction.

Identifying the Right Buyer and Valuation Approach

Neofyn utilized its extensive network to identify potential buyers for the client’s assets,

targeting those who could meet both the regulatory and financial requirements. To establish

the value of the assets, Neofyn conducted a comprehensive valuation in line with IFRS

standards, employing a Discounted Cash Flow (DCF) model. This method proved to be the

most reliable approach, as alternative models like multipliers did not align with the specifics

of the transaction.

Data Gathering and Financial Analysis

Neofyn worked closely with the client to collect all necessary financial documents, including

current financials, cash flow statements, and financial planning data. With these inputs,

Neofyn developed a detailed investor presentation, highlighting the assets' value proposition

and aligning with the expectations of potential buyers.

Strategic Exit Planning for Tax Optimization

Beyond the valuation and buyer search, Neofyn provided strategic advisory services to

optimize the client’s exit. The team conducted a thorough review of the client’s holding

structure, identifying opportunities to reduce exit taxes. This involved proposing adjustments

to the structure and assessing various jurisdictions to ensure the transaction was as tax-

efficient as possible.

Full Transaction Support and Negotiations

Neofyn supported the client at every stage of the transaction, acting as a trusted sparring

partner. The team facilitated negotiations to secure the best possible pricing, reviewed

Letters of Intent (LOIs), and prepared Asset Purchase Agreements (APAs) to ensure the

terms were favorable for the client. Neofyn structured the deal effectively, creating a solid

foundation for both parties to reach an agreement.

Overcoming Challenges with Strategic Alternatives

When unforeseen circumstances threatened to delay the process, Neofyn quickly explored

alternative solutions. One such measure involved considering the relocation of assets to a

more tax-friendly or less regulated jurisdiction to reduce time pressure and mitigate risks.

These proactive strategies ensured the deal remained on track despite the challenges.

The Results

After two months of focused effort and strategic negotiation, the transaction was successfully closed with a selling price of $15 million USD. The client achieved their goal within the desired timeframe while benefiting from Neofyn’s expert guidance, streamlined processes, and tailored solutions.

This case study exemplifies Neofyn’s ability to navigate complex regulatory environments,

deliver strategic solutions, and achieve outstanding results for clients, even under challenging

circumstances.