Official launch Marktlink Transaction Services
In line with our aim to achieve optimal results at an acceptable cost, we introduce Marktlink Transaction Services. This new service will enhance our clients’ financial vendor due diligence process, and allows Marktlink to reinforce its proposition in the market, as it contributes to a higher yield as well as a smoother sale process. “The use of data and transaction services expertise is indispensable to bring sell-side mandates to a successful conclusion”, Tom Beltman explains this new development.
The M&A market has seen considerable professionalisation and internationalisation for a number of years. “Private equity acts as the buyer in about 75% of acquisitions, which puts increasing demands on the way M&A consultants market companies”, Tom Beltman points out. “The days of including the two latest annual accounts in a sales brochure are a thing of the past as far as we are concerned. With a fully-fledged team of developers, we have worked hard on Dealfunnel in recent years, an in-house software system, unique for its matching and data analysis. We now add the financial due diligence expertise (‘FDD’) of Marktlink Transaction Services to this software, allowing us to look even more closely at the story behind the annual figures, such as developments in the market, margin analyses and in-depth cash flow analyses.”
Vendor due diligence
The results of those analyses are essential for private equity parties to reach a transaction, Tom Beltman knows. “However, the problem is that the results of those analyses often only come to light during the buyer-initiated due diligence, which is only carried out after the letter of intent. Each new insight then leads to a dispute, which in turn affects the purchase price, and in some cases, causes buyers to back out of a deal. Such risks can be avoided if sellers commission a due diligence themselves: a vendor due diligence. This comes at a hefty cost. For many sellers, this is too high an expense at a time they do not even know whether there will be any interest in their company at all.”
Optimal service
Marktlink’s way of working is distinctive for its unique combination of a data-driven strategy and a personalised approach. Throughout, we always strive to improve our services; bringing FDD expertise in-house is a logical next step. “The cost of the vendor due diligence process is financed through a pre-investment by Marktlink. By doing so, we achieve an optimal sales process for the client at an acceptable cost. We are convinced that this is an indispensable requisite to successfully complete sell-side mandates”, Tom Beltman concludes.
“In addition to the use of Marktlink Transaction Services in sell-side mandates from Marktlink’s clients, this service will also be made available for buy-side clients or buyers and sellers outside of our network”, Tom Beltman says. “They will benefit from our Dealfunnel software and extensive international Transaction Services experience as we use it to successfully complete transactions.”
Steije Hoolwerf recently joined as Managing Partner of Marktlink Transaction Services. This professional skilfully looks for opportunities to pragmatically resolve issues arising from financial due diligence findings. He has worked at PwC and SINCERIUS, where his focus was on providing impactful advice to private equity firms, strategic clients and SME entrepreneurs. His experiences confirm Tom Beltman’s vision. ”In the first month, we launched five due diligence investigations, confirming the demand for this service. We aim for a team of at least 10 internationally active FDD specialists within 24 months, and so we are focussing on reinforcing the team”, Steije points out.
