Mergers and Acquisitions
in the Language Services Industry
Do you want to break through a business plateau with inorganic growth? Mergers & Acquisitions (M&A) have become one of the main corporate tools for companies looking to produce big wins. It’s not simple though: bringing organizations together through M&A is among the most complex business activities. We assist small and medium-sized sellers and buyers at every step of the way, providing guidance on M&A transactions.
Getting Ready for M&A
As Mergers & Acquisitions become increasingly popular within the Language Industry, many small and medium-sized company owners are now considering it as the option to drive exponential growth or capitalize on the effort of a lifetime.
Coming around to the idea of M&A means answering every possible question you may have along the way:
- How can M&A accelerate my company growth?
- Is my company big enough for an M&A transaction?
- When might be the right time to sell?
- How big a company could I buy?
- Is the company ready for sale, or should the focus be on building value for a future sale?
- How much is my company worth?
- How long does it take to close the deal?
- What happens after the closing?
- How much will this all cost me?
- What happens after the closing?
- How much will this all cost me?
Looking to sell your company?
When selling your company, a blind teaser is one of the most important documents you will create in the entire process. It is often the first thing a potential buyer will be presented with and will help them form their first impression of your company.
A look at some recent deals in the language services industry
Lexcera: The right strategic move for t'works
The deal reinforces t’works aims for expansion in Europe, considering that 35–40% of their customers are already located outside Germany.
ElaN Languages and OneLiner opted for merger over full-acquisition
A merger is a good fit when both companies share an excellent reputation in their respective markets. The new group combines EUR 13m in revenue and looks to tap on the government tender market.
By acquiring NZTC, Strakers continues to extend its presence in the Asia Pacific region
In February 2020 Straker acquired local rival New Zealand Translation Centre Limited International for USD 1.1m — 0.4x revenues.
The Key Drivers for M&A
The transaction bases within the language services industry follow the same logic as M&A in other industries and vertical markets.
What do you look for as a buyer?
- Growing inorganically
- Expanding to a new region or into new vertical markets
- Acquiring seller’s technology
- Diversifying your portfolio
What do you look for when selling or merging?
- Becoming part of a more robust platform for growth
- Scaling your business operations
- Monetizing the investment of a lifetime
- Exiting your business entirely (retire, focus on other projects)
How We Can Help
Are you a small or medium-sized Language Service Provider (LSP) looking for opportunities in Europe with significant upside potential? If so, we can help you understand how M&A might serve your longer-term goals. We offer both Business Broker and M&A Advisory Services.
Business Broker Services
We work with Buyers to understand their goals and identify quality companies for sale to acquire.
Preliminary discussions & Documentation
Sign Finder's Agreement
Understand your business model, investment and growth strategy
Set your goals as a Buyer
Draft your ideal Seller’s Profile
Find Sellers that fit your business model and growth strategy
Submit potential Sellers’ profiles
Discuss candidates profiles and define those with the highest strategic fit
Exchange NDAs with Seller
Make an official introduction to the candidate Seller and facilitate initial meetings
Provide support if you want to move forward with the process and draft a post-merger scenario
M&A Advisory Services
We help you align an M&A strategy with your overall financial and growth goals and prioritize opportunities.
- Discuss the M&A market and trends
- Set your growth goals as a Buyer
- Define your ideal Seller’s Profile
- Create an M&A roadmap
- Identify quality Sellers
- Calculate the Seller’s company valuation
- Carry out the Seller’s business due diligence
- Draft a Letter of Intent (LoI)
- Perform Tax & legal due diligence – through strategic partners
- Negotiate price and deal framework
- Draft post-merger integration plan and make sure it achieves expected results (management, structure, processes, culture)
We help you structure the best possible deal, according to your strategic and financial expectations.
- Design the M&A deal framework
- Support in drafting of contracts and deal-related agreements (escrow, earn-out, etc.)
- Refer you to lawyers, accountants, and other financial and labor law experts
We assist you during the post-deal integration period and help you prepare a solid execution plan.
- Execute post-deal integration plan and guarantee its rollout up to the end state
- Re-design and implement organization and accountability charts
- Review governance policies
- Define an actionable growth business plan and maximize synergy opportunities that accelerate value creation
- Ensure cultural alignment and facilitate a smooth transition into the new company
- Materialize early wins
- Create an effective change management plan
- Pinpoint a corporate communications schedule
- Outline a detailed customer retention process
- Assist with HR transition and integration, talent management, and retention plan
- 100-day check-up on integration results (Finance, Sales, Operations, IT, corporate culture)
- Discuss the M&A market and trends
- Set your growth goals as a Buyer
- Define your ideal Seller’s Profile
- Create an M&A roadmap
- Identify quality Sellers
- Calculate the Seller’s company valuation
- Carry out the Seller’s business due diligence
- Draft a Letter of Intent (LoI)
- Perform Tax & Legal due diligence – through strategic partners
- Negotiate price and deal framework
- Draft post-merger integration plan and make sure it achieves expected results (management, structure, processes, culture)
- Design the M&A deal framework
- Support in drafting of contracts and deal-related agreements
(Escrow
, Earn-out, etc.)
- Refer you to lawyers, accountants, and other financial and labor law experts
- Execute post-deal integration plan and guarantee its rollout up to the end state
- Re-design and implement organization and accountability charts
- Review governance policies
- Define an actionable growth business plan and maximize synergy opportunities that accelerate value creation
- Ensure cultural alignment and facilitate a smooth transition into the new company
- Materialize early wins
- Create an effective change management plan
- Pinpoint a corporate communications schedule
- Outline a detailed customer retention process
- Assist with HR transition and integration, talent management, and retention plan
- 100-day check-up on integration results (Finance, Sales, Operations, IT, corporate culture)
Business Broker Services
We work with Sellers to understand their merger goals or exit strategies and match them with potential Buyers.
Preliminary discussions & Documentation
Sign Finder's Agreement
Understand your business model, investment and growth strategy
Set your expectations as a Seller
Draft your ideal Buyer’s Profile
Gather the information you need to present your company to prospective Buyers
Discuss candidates profiles and define those with the highest strategic fit
Find Buyers that regard your company as a good fit for their business model and growth strategy
Exchange NDAs with the Buyer
Make an official introduction to the candidate Buyer and facilitate initial meetings
Provide support if you want to proceed with the sale of the company
Strategic Consulting for Sellers
Is Now the Right Time to Sell?
For many business owners, their company represents the culmination of many years of hard work and primary source of wealth. When thinking about how to sell a business, you should look to maximize the value through a combination of planning and timing. We help you discover weaknesses and risks within your organization that can be addressed well in advance of a Buyer approaching you.
M&A Advisory Services
We help you design a plan in line with your merger or exit strategy and develop a compelling story that attracts the best possible buyer.
- Discuss M&A market and opportunities, and exit strategy options
- Set your goals as a Seller
- Understand if your company is ready for sale and create an M&A roadmap
- Define your ideal Buyer’s Profile
- Develop your company’s blind Teaser
- Collect documents to submit potential Buyers
- Identify potential Buyers
- Vet interested Buyers (strategy, financials, business plan) and set price expectations
- Prepare documents for business and tax & legal due diligence
- Negotiate price and deal framework
We help you structure the best possible deal, which is often one of the most complex steps in the M&A process.
- Design the M&A deal framework
- Support in drafting of contractual documentation and deal-related agreements (escrow, earn-out definition)
- Refer you to lawyers, accountants, and other financial and labor law experts
We assist you during the post-deal integration period and help you prepare a smooth transition to the new company.
- Define common objectives and foster best synergies with the Buyer’s company
- Transfer strategic information for the buyer
- Structure HR records and profiles
- Facilitate staff alignment with new context and re-training as necessary
- Provide assistance with the transfer of customer profiles to the new company
- Prepare teams for the cultural shift
- Keep track of post-merger integration plan
- Support the completion of the deal until it’s finalized
- Guarantee the completion of the deal from a contractual standpoint
- Discuss M&A market and opportunities, and exit strategy options
- Set your goals as a Seller
- Understand if your company is ready for sale and create an M&A roadmap
- Define your ideal Buyer’s Profile
- Develop your company’s blind Teaser
- Collect documents to submit potential Buyers
- Identify potential Buyers
- Vet interested Buyers (strategy, financials, business plan) and set price expectations
- Prepare documents for business and Tax & Legal due diligence
- Negotiate price and deal framework
- Design the M&A deal framework
- Support in drafting of contracts and deal-related agreements
(Escrow
, Earn-out, etc.)
- Refer you to lawyers, accountants, and other financial and labor law experts
- Define common objectives and foster best synergies with the Buyer’s company
- Transfer strategic information for the buyer
- Structure HR records and profiles
- Facilitate staff alignment with new context and re-training as necessary
- Provide assistance with the transfer of customer profiles to the new company
- Prepare teams for the cultural shift
- Keep track of post-merger integration plan
- Support the completion of the deal until it’s finalized
- Guarantee the completion of the deal from a contractual standpoint
Geert Vanderhaeghe
Lexitech – Belgium
Roberto is the ideal sparring partner, your trusted personal coach in company management, ready to share his vast experience in the language industry. You can ask Roberto the questions you never dared to ask about how to manage and improve your business. His answers are always tailored to your company and you.
Susana Peixoto
Expressão – Portugal
Giuliana Masolo,
Yellow Hub TDR, Italy
Tiziana De Rosa,
TDR Translation Company, Italy
Lúcia and Filipe Stankovic
LinguaeMundi – Portugal
Filippo Rosati and Orsolya Fábián,
Lexyca, The Netherlands
Federico Perotto,
InnovaLang Srl, Italy
Determining a Company's Market Value
Business valuation is a critical component of the M&A process, as it is the first step to determine how much your company is worth or how much you should pay for the business you would like to acquire.