![Photo: Dr. Heiko Frank](https://cdn.fyb.de/wp-content/uploads/2024/07/frank-heiko-400.jpg)
Handling increasingly complex transaction processes
WTS Advisory is committed to providing target-oriented advice and active operational support to companies along the entire CFO agenda.
In addition to our Reporting & Regulatory and Financial Services divisions, the Deal Advisory division focuses on comprehensive services in connection with M&A transactions.
As part of Deal Advisory, the M&A Strategy team supports entrepreneurs in M&A processes (sell-side and buy-side) from the preparation of transaction documents to approaching investors or target companies to the notary appointment.
In addition, the Transaction Advisory division provides process-related services such as financial due diligence, purchase price allocation, company valuations in accordance with IDW S1 or S6 and financial modeling.
Our highly qualified team provides our clients with a wide range of services relevant to M&A deals from a single source.
And this is very uncomplicated and at short notice, as we can complete the necessary conflict checks in the shortest possible time due to the fact that the WTS Group does not carry out audits of annual financial statements.
For example, our own ESG department can address any omissions in this area before a transaction, which can directly increase the value of the company.
The same applies to our Digital Unit, which specializes in the digitalization of financial functions.
For example, we also offer digital solutions for the reporting of private equity investors with large investment portfolios.
Last but not least, the M&A departments of large companies also draw on the skills of our M&A specialists as part of M&A business partnering.
In business partnering, we are the “extended and deepening workbench” for our clients in a positive sense.
In addition to projects, we also take on individual tasks, e.g. creating a profile of a purchase target and work packages such as the management of the virtual data room.
the support of the virtual data room.
On the one hand, we see a challenging macroeconomic situation at present and also in the medium term in a mixture of higher interest rates, which make acquisition costs more expensive, challenging energy prices and only minimal economic growth.
On the buyer side, this is leading to increased caution, more complex due diligence processes and lower company valuations than in the record M&A year 2021.
On the other hand, we are seeing the effects of ever-increasing regulation at the micro level of the individual entrepreneur.
It is becoming increasingly difficult for many companies to maintain operations and remain profitable with all the new requirements.
This is accelerating the M&A market, because “some entrepreneurs simply don’t want to do it anymore”.
One example is the toy industry, which is struggling with microplastic or forestation regulations, machine certification (see trade associations, etc.) and extremely high reporting costs.
Unfortunately, times remain uncertain and volatile.
— We should be careful: these developments at companies could ultimately lead to the deindustrialization of the country.
However, we can also report positive things from our daily practice: With regard to company valuations, a “new normal” has settled in, admittedly at a lower level, so that buyers and sellers are once again finding each other much better in terms of purchase price expectations.
The private equity industry is also starting to invest more and more again — after a 30+% downswing in 2023.
About Dr. Heiko Frank
Dr. Heiko Frank, Dipl.-Kfm. has been a partner at WTS Advisory since 2021. He is responsible for Mergers & Acquisitions and Board Advisory Services. His focus is on a holistic range of advisory services along the entire transaction process — from M&A strategies and financing to due diligence and the coordination of contract negotiations and closing.
In his more than 30 years of professional experience, Dr. Frank has always worked in the area of “National & International Professional Services” as a managing director, board member and senior partner.
In addition to leadership and management roles in consulting and corporate finance companies, he has primarily advised mid-cap companies and groups.
Dr. Heiko Frank is a member of the supervisory board of several medium-sized (listed) companies and has been a judge at Augsburg Regional Court since 2000.