Services
Sanabe offers the following services:
Mergers & Acquisitions
Sanabe represents both sellers and buyers in M&A transactions. Industry expertise is a key asset in virtually every aspect of the sale or acquisition process.
In sell-side assignments, we leverage our expertise to:
Work with the seller from the outset to identify approaches and solutions to key challenges in a sale process, such as:
- Strategic and market position
- Operational issues, if any
- Supplier or customer relationships
- Management structure post-sale
- Financial performance
Identify the most promising strategic, financial and entrepreneurial investors by understanding their growth priorities, key investment criteria and strategic challenges.
Develop high-impact marketing materials that effectively address the key selling points and issues for potential buyers.
Prepare tailored approaches to interaction with each potential buyer during management presentations, site visits and follow-up.
Evaluate the "money terms" of competing bids (closing adjustments, earn-outs, stock bids, financing).
Understand all available sale and recapitalization options to maximize leverage in negotiations.
Please view the following case studies:
- Badger Paper Mills
- Bowater/Great Northern Paper
- Curtis Papers' Port Huron Mill
- Finch, Pruyn & Company
- NewPage Little Quinnesec Hydroelectric Facility
- Repap Enterprises
- St. Laurent Paperboard
- Synergics Energy Services Hydroelectric Assets
Restructuring
Sanabe has been involved in several operational turnarounds and financial restructurings/bankruptcies in the building products and paper sectors.
In operational restructurings, we focus on:
- Developing a detailed turnaround plan based on an understanding of a business' customer base/mix, production process, contribution margins, workforce structure and other fixed costs
- Identifying total investment requirements based on an achievable path to steady state operations
- If appropriate, marketing to those investors we have identified as willing to undertake these complex investments
- Coordinating with government officials and community leaders to identify potential incentives available to assist the restructuring
- Working closely with the financial personnel of our clients to manage cash needs in situations where operational challenges are coupled with liquidity constraints
For companies in financial distress, including bankruptcy, we assist our clients by:
- Understanding industry valuations and how the various stakeholders view a business
- Using our industry expertise to provide broader context regarding a distressed company's operations. Given our knowledge, we are able to provide broader perspective on product markets, and equally relevant, delve into the details of the operations to see how value can be unlocked
- Providing expert testimony in litigation
- In several cases, partnering with bankruptcy/restructuring-focused financial advisors to bring together industry expertise and an understanding of the restructuring process to provide the most comprehensive advice
Please view the following case studies:
- Badger Paper Mills
- Curtis Papers' Port Huron Mill
- Smurfit-Stone Container (Ad-Hoc Group of Preferred Equity Holders)
Financial Advisory
Sanabe has completed a number of financial advisory assignments for clients in the building products and paper sectors.
We use our industry knowledge and focus on the detailed financial results of our clients to identify opportunities to enhance profitability and eliminate money losing operations.
We focus on identifying key economic drivers and sources of profitability.
Where a company is vertically integrated, we have found success by analyzing each of its operations as an independent profit center utilizing third party product pricing and input costs.
Please view the following case study:
Merchant Banking
Sanabe has organized investor groups to bid for companies in our focus sectors.
We most typically look to troubled operations, where we can take advantage of:
- Our operating knowledge to develop a business plan
- Financial expertise
- Knowledge of financial sponsors willing to look at complex situations
When advising a financial sponsor in an acquisition situation, we typically seek a portion of our fee in equity. This aligns our interests with the investors.