Mergers and acquisitions in the Internet

“Retail Online” LLC offers wide range of services on supporting mergers and acquisitions in the area of e-commerce. Each of such deals assumes financial valuation of resource, usability study and requires valuation of numerous important for online business factors. Within the scope of M&A projects our specialists perform the following works:

Search of potential targets, target listing and prioritization

• Online business valuation
• Due diligence
• Search of potential targets, target listing and prioritization

If the client has made a decision to enter online business through acquisition of existing Internet-project, “Retail Online” specialists are ready to consult on choosing one or another target for acquisition. We can also organize search of targets, negotiate the willingness of outlined alternatives’ shareholders to enter any kind of deals and prepare prioritized list of potential targets.

As the result of works performed our client is furnished with a prioritized by attractiveness list of targets for acquisition, detailed description of resources with their strategic and technical strengths and weaknesses, results of preliminary negotiations with their shareholders. Upon completion of this stage, client obtains the vision on possibility of acquisition of existing web-resource and basement for comparison M@A strategy with Greenfield project in E-Commerce area.

Due Diligence

Due Diligence in the Internet is the procedure of comprehensive valuation of wide range of E-business activities of the web-resource. During the Due Diligence procedure “Retail Online” specialists study all areas of web-business activities and carry out independent judgment and recommendations for improvement.

Usually the list of procedures performed by “Retail Online” includes technical due diligence of the resource (design, usability, quality of programming, etc.), assessment of web-resource current promotional activities in the Internet, determination of resource competitive position as well as its competitive strengths and weaknesses. The procedure of Due Diligence may also include financial analysis of resource and its valuation.

As a result of Due Diligence client obtains not only assessment of the present resource status, but also specific recommendations for online business improvement.

Web-resource valuation

“Retail Online” also offers the services of web-resource valuation. One should note that this service can be applied both to existing and perspective online businesses with a potential to generate the profit. To obtain “fair” web-resource value we use several different methodologies taking into consideration all basic parameters of the subject of the deal such as amount of unique resource visitors, business turnover, level of resource uniqueness in the Internet, etc. By using several different approaches we guarantee that valuation process is objective and provides “fair” estimates of the online business value.