Specialties

The AVP team has a passion for value generation and growth. We are using a well-defined and well proven process for the development and implementation of organic and inorganic Strategic Growth Plans (SGP) together with our clients.

Typical Value Drivers for Strategic Business Growth

Typical Process Elements for SGP Development

Strategy Implementation

We support strategy implementation as part of our consulting and transaction work

Organic growth

• Implementation project design
• Project management
• Support/coaching of responsible line managers
• If needed interim management

Inorganic growth (M&A, Partnering)

• Target search and approach
• Valuation and Due Diligence
• Development of integration / cooperation concept
• Post-merger integration

What if Growth Targets are not reached?

Many SMEs and divisions of larger corporations, do not reach their ambitious growth targets despite major efforts.

The reasons are often a combination of the following issues:

• Inadequate market access
• Growth strategy not aligned with company structure
• Weak product portfolio and uncompetitive cost structures
• Unresolved “growth inhibitors”
• Inadequate investments to implement growth strategy

AVP has developed a very efficient pragmatic approach consisting of four steps, which leads directly into implementation measures and action plans.

Approach and Methodology

Our approach is based on the belief that the focus during the entire process must remain on implementation. Therefore, we work very closely with the management and other responsible persons in the company from the very beginning. We also recommend that younger, ambitious employees from all areas of the company be involved, which ensures that the project is well accepted within the company. This also results in early establishment of Change Managers and Agents throughout the organization.

After comprehensive preparation, the various topics are developed together in workshops with the clients. For this purpose, we developed processes that have proven very successful in many mandates and are tailored to the customer’s needs. For evaluation of the established growth opportunities, a filtering process is applied, in which the respective initiatives are reviewed and evaluated in four dimensions. Barriers are analyzed and play an important role in the selection process.

Oftentimes, the most difficult part of the process is deciding which initiatives will not be pursued. However, this step is crucial for the effective implementation of the chosen strategies because the company’s resources need to stay focused.

For the implementation of selected initiatives, modules and interdisciplinary projects are defined and the project managers of these modules receive the necessary resources and skills. Strategic reporting and controlling are put in place to help achieve the goals, by providing the necessary motivation. Often we support the crucial implementation phase in the role of project manager or project coach.

Such business units or spin-off companies are usually tightly connected to the value chain of the parent company and are often reliant on the parent company in the areas of IT, controlling, reporting etc. In addition, the spin-off of assets often has to be done under time pressure and is costly, requiring careful preparation and discipline for optimal implementation.

In the context of an independent multi-stage project, the carve-out process can be optimized by applying the following value-added steps:

Preparation phase

• Identification of the business unit or businesses to be spun-off
• Development of an independent (“stand-alone”) business plan to establish a sales price
• Presentation of the resulting unique and on-going project and investment costs

Planning phase

• Preparation of various carve-out issues in sub-projects (modules)
• Development of a schedule for step-by-step implementation of module activities

Implementation phase

• Support of separation activities in the context of project management
• Assurance that established schedule and actions for milestones are kept to

Divestment as part of a carve-out / corporate spin-off process requires not only sound M&A expertise but also extensive experience in the field of strategic management consulting. With this skill set, AVP has successfully completed numerous projects.

Preparation, monitoring and implementation of a successful succession plan is a long-term, complex and interdisciplinary process that requires careful planning and structure. A succession plan is akin to a project and is extremely difficult for the owners to manage in addition to the daily business without professional external support.

Preparation

• Evaluation and assessment of possible solutions:
  What is the status within the company and the founding family? Which persons can be considered to remain in the company for the continued operation of the company? Should the company be passed on to the next generation within the family or is the time ripe to pass it on to the management or is it time to sell it to an external partner?
• Strategic considerations:
  Depending on the situation and priorities, different importance is given to the independent survival of the company. For example, sometimes a merger with a competitor might be the necessary or preferred solution.
• Getting the timing right (Selecting the right time):
  When is the right moment to pass the company on to a new entity? In general, a strong business, a positive business environment and promising future prospects of a company bode well for an impending succession. Determining the right time to sell is a difficult task and, therefore, timing is a key issue for a successful transaction.
• Financial considerations:
  The valuation or pricing in a succession solution is a high priority not only for external parties but also family successors. A number of different factors can be introduced carefully to the pricing and negotiation process so they are taken into consideration.

Implementation

• Initiating the project:
  Once the preliminary questions have been sufficiently evaluated, the succession process can be started. To ensure that the project receives the necessary attention, it should be set up as an independent project with appropriate human resources. External support assures that the complex project will be implemented with the necessary objectivity and professionalism.
• Structuring of the processes:
  Depending on the situation, the seller and the buyer offer very different structures for implementing a succession plan. Oftentimes, property or business units need to be divested separately before or after the transaction, which could have legal and tax consequences, which need to be taken into account.
• Transfer to the successor:
  The new role and function of the buyer and the seller is always an issue in a succession solution. Will the founder of the company leave the company after a transition period or will he or she remain in a supervisory role or as a board member?

It has been proven in numerous projects that the added value of professional support in succession processes leads to better results; convincing professional company documentation and sales situation, development of an ideal transaction structure, identification of “non-obvious” target buyers, optimizing the sales process, all lead to an optimized transaction result. Over the years, AVP has built up extensive experience in succession solutions for Swiss and international family.

Japan

Cross-border business between Europe and Japan has been a key focus since 1992 and we have completed over 100 mandates reaching from market entry into Japan through strategic partnering and licensing all the way to supporting Japanese clients’  European market entry or expansion through consulting mandates and/or partnering/M&A mandates. We have strong industry and key customer relationships with Japanese market leaders in all our practice areas.

India

India is a focus market for inbound and outbound transactions as well as domestic business and project development. Our team has extensive experience in cross-border investments and M&A, international joint ventures, technology transfer and localizing and have concluded many international and domestic projects. Customers include international companies interested or active in the Indian market as well as many local Indian companies.

Key activities in the Indian market include:

• Market entry strategy
• Search and mediation of strategic partnerships
• M&A (buy and sell side)
• Project development and financing
• Foreign Direct Investment

Target market segments include:

• Waste management and waste-to-energy
• Renewables: Solar, Wind, Biomass
• Power Generation, Transmission & Distribution, SmartGrid
• Water: Industrial, Municipal, ZLD, Consumer
• Recycling: Plastic, eWaste, Metal

China

For China business support, we have a dedicated team located in Shanghai and Zurich as well as a strong network of local contacts.

Business Support in China (inbound)

Our services include supporting foreign companies in all aspects of Chinese market entry and/or business improvement including strategic partnering and M&A. The local business research team is very experienced and has a track record of over 100 international customers.

Outbound Activities

Over the past few years, Chinese buyers have become very active in Europe and North America. We have supported several transactions and have on-going active search agreements with several important industrial groups.

We support Chinese companies abroad with the following services:

• Target identification
• Transaction support
• Due Diligence
• Post-merger integration and business expansion

Some examples are:

• Growth financing
• Acquisition financing
• Investment financing
• Re-financing

Standard or customized solutions are offered by private, professional and institutional market participants as solutions.

In any case, careful preparations are necessary to provide relevant documentation, to successfully negotiate with the funding partners and to be able to make the optimal financing decision.

AVP advises companies and their owners in the selection of appropriate financing solutions. Thanks to excellent contacts to national and international investors, AVP is highly capable of organizing the necessary financing.