Transactions

Buying or selling companies

 

What are the three innovative concepts proposed?

Innovative solutions for mergers and acquisitions

We are going to put a new application on our official website collaborationcapital.org. Here is our concept!


1. The concept of position


Currently, digital platforms only offer a classified ad model, which reduces the need for the business executive to an exclusive and unique posture. He is either a buyer of a company or a seller. The model of a classified ad is historically exclusive.
Moreover, the classified ad posture presupposes that others will express an interest in buying the business for sale, or offer their business to a company that wants to buy. It, therefore, presupposes a strong commitment, which will be transformed into a project of acquisition or sale, if the discussions with a counterpart are successful. In this case, the author of the classified ad cannot test, evaluate, explore anything without a voluntary relationship triggered by the counterpart.

There are several benefits to the concept of position.

  • The first benefit lies in the possibility of inserting a concept of multiple, i.e. telling an executive that the specificity of a position allows him to express several desires, several marks of interest, simultaneously. The same company executive will be able to express the desire to buy a company in one sector of activity and according to a defined size; then another in another sector of activity and according to a defined size; and even to sell one of its subsidiaries, etc.
  • The second is to automatically trigger the display of potential counterparts. In contrast to the publication of a classified ad, which will wait for a symmetrical application (a classified ad for a company sale will wait until readers are interested in this sale to express an interest in buying), the declaration of a position will automatically display the list of potential counterparts. This immediate display allows an executive / CFO to quickly assess the probability of his project, the number and type of potential counterparts to his project, with statistical information on the counterparts. The display of counterparts is organized according to 3 levels of counterpart commitments: identical symmetrical positions, probable positions, and finally potential counterpart positions.

  • The third benefit lies in the management of anonymity, which fosters freer, more open, and incremental discussions. Each party decides whether or not to disclose its identity when it deems it necessary. This first stage of discussions in anonymity allows focusing the exchanges on the essentials in order to quickly check the synchronization or the gap on the essentials of each one.

  • The fourth and final benefit lies in the tool for building the executive’s strategy. Indeed, the concept of position (which is multiple) -combined with the automatic display of potential counterparts and anonymous discussions- allows the essential elements of a possible strategic orientation to be assessed. The executive can thus become aware of the price to pay or the level of difficulty to carry out a transaction and thus favor one rather than another according to his means and objectives.


2. The concept of anonymity management


Anonymity applies to the author of the position, i.e. the name of the company and/or the executive. The management of anonymity is an essential aspect of the position. It is set at the lowest level, which is the position level and not the user account level.

Thus, it is on each position that the author of the position decides whether or not to reveal his identity, and it is not linked to the counterpart. The author of a position can reveal his identity without claiming or imposing the disclosure of the counterpart’s position author.

The Partner may propose to its customer (company) the moment, or the stage, at which it may disclose the identity of the position’s author.


3. Display of counterparts

Three different levels of counterparts form an essential asset of the “Transactions” application.

When inserting a position, a series of calculations can display three types of counterparts:

  • Interested counterparts: have already declared a symmetrical position
  • Identified counterparts: resulting from statistics that make it possible to assess the probability of interest, based on a history of deals already carried out
  • Potential counterparts: resulting from more advanced statistics that make it possible to evaluate a potential counterpart’s interest