M&A Advisory Mandate for the Acquisition of an Asset Management Company

Mandate Description

The mandate consisted of a mergers and acquisitions advisory assignment carried out on behalf of a Swiss banking institution in the context of the acquisition of an independent asset management company based in German-speaking Switzerland.

The transaction formed part of a geographic and sectoral expansion strategy aimed at strengthening the purchaser’s presence in the collective asset management and specialised funds market.

The target company, regulated in Switzerland and serving a diversified institutional client base, managed a portfolio of investment funds and discretionary mandates across multiple asset classes.

The assignment covered the structuring of the acquisition process, a valuation review and the coordination of transactional and regulatory aspects.

Key Issues

The main challenges of the mandate were to assess operational and commercial synergies between the two organisations.

A key objective was to analyse the profitability and cost structure of an asset management company operating under strict regulatory constraints.

The transaction also needed to be structured in full compliance with FINMA requirements and industry prudential standards.

Another critical aspect was to secure the valuation of the target based on robust financial and strategic criteria.

Finally, the mandate required adapting the transaction timetable to evolving Swiss regulatory developments related to the representation and distribution of foreign funds, in order to ensure full compliance prior to completion.

Observed valuation multiples for comparable asset management companies in Switzerland generally ranged between three and six times EBITDA, depending on size, operating margin and client profile.

Approach and Results

The assignment enabled the modelling of several acquisition scenarios and the analysis of post-transaction value creation.

• It also involved the coordination of financial and regulatory due diligence processes.

The transaction was conducted within a competitive framework and resulted in a smooth integration of the target company while preserving operational continuity and existing governance structures.

This operation strengthened the purchaser’s position in the Swiss market and expanded both its product offering and geographic footprint.