A Europe-based Engineering Services firm wanted to sell off its delivery center in India and find an appropriate buyer to take on the India operations. They also wanted to prioritize the core operations of the business while keeping an eye on the talent market in India.
The client identified an Indian Global Engineering and Product R&D firm as a potential candidate for this significant transaction. They were particularly interested as the deal terms were favorable to both the parties and complimented each other well in respective ER&D capabilities and market leadership.
Zinnov was tasked to assist them with strong advisory capabilities for an efficient sale process which would be beneficial for both the companies.
In order to support this incredibly important transaction process for the client, we served as the project’s sole financial advisor. We began the discussion with the client and helped them in identifying the portion of the business that needs to be sold off together.
This was done through a deep-dive analysis of all facets of the client’s business by understanding their requirements and current capabilities.
Further, we carried out internal due diligence to help determine the sale’s pricing expectations. Through a deep understanding of the sector and competitive benchmarking, we collaborated with the client to come up with a range of feasible transaction values for the sale. We also prepared comprehensive transaction collaterals, approached potential buyers for sale, and set up VDR.
Finally, prospective buyers were shortlisted based on their bids. Here, we assisted the client in driving negotiations with them. After extensive negotiations with multiple parties, the right buyer was selected for the client’s India business at favorable deal terms. Company X was chosen for this transaction based of their value creation proposition that helped the client free-up resources. This in turn enabled a strong focus on prioritized growth areas while still maintaining the client’s access to high-skilled resources based in India.
The client struck an impressive deal with X which strengthened their delivery in India. The long-term cooperation agreement with X as part of the deal ensured scaled-up delivery capacity and long-term profitability for the client.
This deal was beneficial for the client as it provided them with continued access to Indian operations for ER&D services without the earlier constraint of end-to-end management. Additionally, future collaboration with the buyer firm in Product Design, R&D, Embedded and Electronics, Value, Digital, and Manufacturing Engineering would generate long-term wins for the client.
The transaction also helped the buyer to deliver services to the European market leveraging the client’s customer-facing team for their scalability.
Zinnov’s extensive network and precise financial advisory helped the client identify and collaborate with a suitable buyer for this important transaction and crystallize all of their future business objectives with it.