Page 2 - SONEPAR 2021 - AcquisitionBook

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Purpose of this Manual 2 How to use it? 2
Transaction roles and
responsibilities: Who does what? 2
Acquisition governance 3
PHASE 1: STRATEGIC
ANALYSIS 55
4.1 Prepare the DUE DILIGENCE 24
4.2 Create a CLEAN TEAM (if needed) 25
4.3 Calibrate and perform the DUE DILIGENCE 25
4.4 Complete the DUE DILIGENCE 27
4.5 ObtainfinalINVESTMENT COMMITTEE approval 27
PHASE 5: SALE
& PURCHASE AGREEMENT 29
5.1 Select the appropriate pricing mechanism 30
5.2 Request REPRESENTATIONS & WARRANTIES and INDEMNITIES 32
5.3 Consider other financial
guarantees 32
5.4 Request joint & several liability
of sellers 32
5.5 Coordinate with HQ Treasury
and GROUP Communications 33
PHASE 6: CLOSING 35
6.1 Anticipate and prepare
CLOSING carefully 36
6.2 Avoid “Gun Jumping” and confidentiality breaches 36
PHASE 7: INTEGRATION & FOLLOW-UP 39
7.1 Integrate the company 40
7.2 Monitor the integration
and company performance 42
INTRODUCTION 2 4 PHASE 4: DUE DILIGENCE 23
1.1 Align local acquisition strategy
with the GROUP 6
1.2 Identify and screen potential
targets 6
1.3 Consider hiring a M&A adviser 7
1.4 Gather basic information 7
1.5 Enter new countries 8
PHASE 2:
EXPLORATORY PHASE 11
2.1 Sign a CONFIDENTIALITY AGREEMENT 12
2.2 Update the SONEPAR
ACQUISITION BASE 12
2.3 Prepare a BUSINESS CASE and
an ACQUISITION SHEET 12
2.4 Deal with minority shareholders 17
6 7
PHASE 3: LETTER OF INTENT 19
3.1 Submit the documents to the INVESTMENT COMMITTEE 20
3.2 Engage external advisors 20
3.3 Draft a LOI 20
APPENDICES TABLE OF CONTENTS
All appendices are available on the GROUP intranet (Mergers & Acquisitions Page).
Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 Appendix 9 Appendix 10 Appendix 11 Appendix 12 Appendix 13 Appendix 14 Appendix 15 Appendix 16 Appendix 17 Appendix 18 Appendix 19 Appendix 20
Acquisition Process
Glossary
CONFIDENTIALITY AGREEMENT template INFORMATION MEMORANDUM template
BUSINESS CASE for LOI approval template ACQUISITION SHEET file template
INDICATIVE OFFER template
Simplified LOI SHARE DEAL template
Simplified LOI ASSET DEAL template
Examples of COMPETITIVELY SENSITIVE INFORMATION CLEAN TEAM CONFIDENTIALITY AGREEMENT template DUE DILIGENCE checklist
BUSINESS CASE for final approval template REPRESENTATIONS & WARRANTIES
APA CLOSING index
SPA CLOSING index
Post-acquisition GROUP requirements checklist Integration plan final template
Acquisition follow-up template
Minimum Internal Control requirements
contents