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External growth

and subcontracting

internationally

Captura de Pantalla 2020-02-15 a la(s) 7

External growth most often makes it possible to benefit from an already established structure, with a local customer base, knowledge of the market, means of production or marketing, to which the company can contribute its know-how, its image international, its management and development management capabilities. AL1 supports you in Spain, France, Portugal and Latin America for:

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  • Preparation of the presentation file for your project 

  • Identification of potential targets based on the profile

  • Contact with pre-selected companies

  • The validation of the targets on the financial, industrial, technical, commercial, human resources, the degree of interest of the leader for the proposal, 

  • Support in negotiation 

  • Assessment expertise

  • The Due Diligence process (with our specialized local partners)

  • The final negotiation

  • Integration follow-up (optional at the client's request)

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Subcontracting helps to overcome a structural shortfall in production, to cope with production peaks, to reduce production costs, to test a market with specific standards, etc.

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The fees of AL1 International:

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Considering that we carry out external growth missions for clients from different countries where the fees pricing practices are different, as well as the cost for this type of mission, in particular compared to Europe, AL1 in order to consistency for its clients, applies staggered flat fees, no surprises, whatever the country and the duration of the research process.

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For our European customers, our pricing model can represent up to 30 to 50% savings.
 

Research methodology for potential companies:

 

The research methodology of companies is carried out by our local consultants, coordinated by the General Management of AL1, from local networking, and AL1 databases, which can possibly be supplemented by targeted communication or contacting with potential targets indicated by our client.

 

Details of the research process:

 

1 - Preparation of the information file on our client and on the external growth project, in the language of the destination country.

 

2 - Identification of the actors present in the area in relation to the sector considered and targeting of potential partners responding to the profile, using our databases and our networks.

 

3 - Signature of NDAs and on-site interviews of AL1 International with the leaders of potential partners to present our client and his objective of external growth, as well as the importance which is attached to the continuity of the team and current leaders.

 

4 - Analysis and validation of the motivation and the degree of interest expressed by the potential partner in relation to our client's proposal.

 

5 - Information on managers.

 

6 - Visit of the company, general condition, impression on the main collaborators and in the case of an industrial project, identification of the equipment used, logistics, etc.

 

7 - Collection of information on figures and key information: Legal structure, turnover and development, customers, sales network, date of creation, subsidiaries, financial situation, human resources, corporate image, solvency.

 

8 - Tariffs, salaries, main current competitors of the company, competitive advantages.

 

9 - Current penetration sectors. Level of interlocutors.

 

10 - Presentation of a report for our client on potential partners and pre-selection with the company.

 

11 - Organization of meetings in the country between the company and the preselected partners.

 

12 - Local monitoring of negotiations in coordination with our client, until the signing of the prior agreement (Letter of Intent) committing to the evaluation process (DUE DILIGENCE) and acquisition.

 

13 - Transfer of the rest of the assignment to the company with support from AL1 and to the partner audit firm of AL1 which will carry out the Due Diligence, if the company decides not to do it itself.

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14 - Monitoring of the progress of Due Diligence.

 

15 - Support (optional) of AL1 for the final negotiation phase.

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The identification work is carried out on the basis of objective criteria, linked to the criteria defined by the company. The pre-selection work is validation work in the field through contacts which allow:

 

  • A visualization of the potential partner's business on site

  • Knowledge of contacts: personality and degree of motivation

  • Better preparation for your future contacts thanks to prior knowledge of: the prospect's interest and expectations in relation to a possible collaboration, the questions or potential problems that the partner could raise, objections, etc.

  • Better prioritization of potential partners.

 

Given the development challenge for our client, the quality of the preselection work is essential to limit the time and cost of negotiation for the company with the identified partners and avoid discovering after several visits, elements that could have been detected in the selection phase and which do not lead to success.

 

The objective is to try to arrive at the selection of at least two potential partners (it depends on the number of companies on the market), validated by the company, meeting the determined criteria, whose complementarity represents a opportunity on the market, and with whom we felt a real interest in the project, but also interlocutors with whom the "current is passed".

 

Duration:

 

By experience, this type of research requires between 3 and 5 months, from the signing of the contract and the payment of the deposit on order, for research, pre-selection, the various verifications and the presentation to the partners' company. potential, motivated and responding to the determined profile.

 

The duration of the negotiation to reach the final agreement depends on the availability of the company and the duration of the Due Diligence.

In practice, too, it takes between 3 and 4 months, depending on the guarantees desired and the complexity of the contract).

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