THE PROCESS
 
 
In today’s intensely competitive business environment, mergers and acquisitions (M&A) have become a common strategic tool for achieving corporate growth, or dealing with major changes in industries. In times of consolidation, as in the Swiss IWM market, either a merger, or an acquisition, seem to be the appropriate answers.
 
There is a growing demand for micro M&A in the financial sector, especially in the Swiss IWM industry, which is historically fragmented. Almost 3,000 IWM firms offer their services to clients world-wide from Switzerland. A consolidation process is necessary.   

LET US RUN YOU THROUGH THE WHOLE PROCESS, STEP BY STEP.


SUBSCRIPTION OF CLIENT AND INPUT PROFILE TO DATABASE

The clients subscribe to the LAN ADVISORY database and pay the initial fee. They then receive a criteria catalogue that is based on almost 50 questions, which provides the necessary information on the structure of their client portfolio. The database then categorizes the information. A personal meeting forms part of the subscription process. Both parties sign a Non-Disclosure Agreement. 

MATCHING PROCESS

LAN ADVISORY matching process is based on two levels.

Level 1 is a FACT FINDING exercise based on a criteria catalogue that every member of the database has to provide. Level 2 focuses on the soft factors and individual preferences of the businesses involved. 

A perfect match in level 1 can be overruled by non-matching factors in level 2. The evaluation of data is more complicated for smaller businesses as they tend to be less streamlined in their product offer and client structure.

As a consequence, the matching process might lead to the sale of client assets to different potential buyers. LAN ADVISORY can manage deals from 10 Mio CHF Assets under Management upwards, due to our lean production process. There is no limitation to the size of a deal.   

​CONTACT CLIENTS WITH MATCHED PROFILE DATA

Once the database finds a match, the involved parties will receive information regarding the profiles that the database and the team have selected. These profiles will not not contain any personal data of the parties.

If all parties agree, we will progress to the next step.

​ARRANGE PERSONAL MEETING WITH MATCHED PROFILES AFTER APROVAL

After the written consent and the signing of a Non-Disclosure Agreement of the parties involved, LAN ADVISORY organizes the information exchange between the candidates. They will receive a complete memorandum on the client book structure together with the names and contact details of the parties.

​DUE DILLIGENCE AND NEGOTIATION PROCESS

The parties will analyze the information received and start their due dilligence process that will lead to the negotiations. LAN ADVISORY, if requested, can become an active part of this process stage.

TRANSACTION

If both parties agree on the terms a contract will be signed.

IMPLEMENTATION

The Implemenation process is of paramount importance. Both parties have to work together in order to achieve a successful transaction. We would suggest that the payments are linked to the success of the implementation process.


FEE STRUCTURE

We charge our clients a one off fee for every profile that forms part of the data base of 3,000 CHF. The Independent Wealth Managers will have one profile, while buyers might have numerous profiles. The proposed matches of profiles are covered by these fees.

When it comes to a succesful transaction, we charge both sides a fee between 3.5% and 2.5% of the purchase / salesprice of the contract, depending on the contract size. 


The following flow chart will illustrate the steps described above.