Tag Archives: buy and sell business

Confidentiality and the Virtual Data Room

Confidentiality during an M&A process is vital for the success of an operation. One of the Corporate Finance Industry success metric is the levels of transparency between buyers and sellers, making confidentiality a crucial in any operation. A good M&A advisor also supports the transparency and confidentiality of the process.

Confidentiality and transparency have their protagonism during many phases of the process; in this article, we will refer specifically to the Virtual Data Room.

Managing confidentiality during an M&A Operation:

Managing confidentiality during this process is a crucial aspect within an operation. Usually the sellers seeks for higher levels of confidentiality but this metric may vary depending on many factors.

For example, if the seller wants a high level of confidentiality he must reduce the amount of potential buyers he reaches, but this will slow down the selling process. Vise versa, if the seller seeks faster results he must amplify his selection of possible buyers, making it more difficult to control the confidentiality factor. 

This may seem like a conflicting paradox for any seller because many business owners do not posses knowledge of the different techniques that can be applied to increase confidentiality during the M&A process.

What are some techniques we can refer to regarding confidentiality during an operation?

Creating a blind teaser: This document is designed to protect the identity of the company being sold when presented to potential investors. The teaser uncovers the situation of the company but not its name. If buyers show interest a confidentiality agreement is signed to protect such identity.

Signing an NDA: Confidentiality is crucial since day one. There will be a lot of agents involved in the process everyone that is exposed to this information must sign an NDA so the idea and intention is protected and safe.

Confidentiality Agreement: This document serves two purposes. The first one is to protect the selling company’s intentions regarding potential investors once they showed interest. The second one is that the signing of this document represent a clear intention of the buyer to proceed with a possible deal.

Data Room: If the deal has gone up to the point that there is the need to create a Data Room it means that we are near to the closing of an operation. In other words we are in a sensible point in which confidentiality is vital. That’s why Data Rooms are designed to protect information since they create a virtual space in which the seller will deliver all the documentation necessary to the potential buyer to proceed with the operation.

Defining the Virtual Data Room

A virtual data room (VDR) is a virtual space where the seller uploads all the necessary documentation of the company so the buyer can have access to it and advance in the process. This transaction of information is extremely delicate and must be made only when there is a trust-worthy and robust relationship between both parties, meaning that there is already the will to invest and close a deal.

The transaction of this information is made through unique online software design to prevent any disclosure of the documentation and keep-safe all the uploaded data. The software must be a high-quality product that provides confidence, security, and safety to both parties involved in the operation.

Imagine how hard it can be for a business owner to expose the essence of their company to someone. Leaving aside the emotional factors that make this operation hard, this part of the process must have all the requirements to ensure safety within the parties.

In every scenario, work-ethic and professionalism must be applied, but when referring to VDR’s we can assure that one of the best options in the market is EthosData. We invite you to take a look at their high-end Service that guarantees safety when taking care of your documentation.

In ONEtoONE we are characterized by the level of transparency, confidentiality, and professionalism with which we handle our clients’ operations. One of our best allies is the trust we generate through our work. Therefore, we encourage you to contact us if you are looking for advisory on buying or selling your company.

Whether Buying or Selling a Company: Pick the Right Advisor

Pick the Right M&A advisor By PAUL HAGER,  Partner of ONEtoONE Corporate Finance

Have you bought, or sold, a business lately?  If you did, how do you know if you received optimal value on the deal? Did you ask an M&A advisor? It can take years before the value gained can be objectively measured, or even whether the result was a business success. Recent McKinsey and Harvard research shows that nearly 90% of all M&A deals fail to deliver the value expected, or achieve their M&A goals.  How can this be?

Well-known, high-profile deals like Daimler-Benz-Chrysler; Time Warner-AOL; Quaker Oats-Snapple; Sears-Kmart; Google-Motorola; Sprint-Nextel, are extreme examples of deals not meeting expectations.  A number of factors lead to poor M&A results.  These include: simply paying too much; fundamental cultural mismatch; massive infrastructure incompatibilities; significant redundancies; or no product synergy, whatsoever (i.e., the marriage simply wasn’t ever going to generate products customers would consider more valuable).

As someone who has bought companies as a Fortune 500 investment committee member, and as a valuation and investment advisor for M&A clients, I’ve found the team you select to be your investment advisor plays a significant role in the amount of value created in the deal.  I hope my thoughts might help you pick the right investment advisor, and significantly increase the likelihood of you achieving your M&A goals.  I’ve listed characteristics I think exist in all exceptional advisors.   An exceptional investment advisor:

1) Asks “Why?”.

You’ve likely heard of Simon Sinek’s Golden Circle paradigm or Paul Ambruso’s use of the “5 Whys” to discern the root cause of success and failure.  The “5 Why” approach was derived from Taiichi Ohno’s 1960s Toyota Production System methodology.  Its purpose is to identify inefficiencies, waste, inconsistencies in manufacturing.  Most importantly, the technique can help people discover and objectively assess assumptions, biases, facts, priorities of any endeavor – personal or professional.  In our case, buying or selling a business.  The “5 Why” method states that clear insight leads to the best decision, and that insight is likely to come only after you’ve assessed answers to five iterations of “Why?”.  For example, your investment advisor might ask, “Why do you want to buy a business?, Why do you think buying another company will lead to greater innovation?, Why do you think this type of research capability will lead to needed innovation?  And, so on.  Asking “Why” throughout the M&A process leads to clearer understanding of why a certain type of company or investors would be the best match.  An exceptional advisor asks “Why” to constantly validate assumptions, eliminate wasted effort, explore new deal options, and sustain deal focus.

2) Understands your business

As an M&A advisor, there is no adequate substitute for deep understanding of a client’s operations and industry sector.  Having empirical insight into current and future industry trends, enabling technologies, and inter-dependent industries dramatically heightens the value ceiling.  An exceptional investment advisor will use this insight, and that of her other industry experts, to develop a set of optimal investment candidates for each client.

3) Spearfishes

Last year, a friend of mine told me of her exciting trip to Bora Bora (How nice is that?)  She said the restaurant would take their dinner order the day before, so that snorkelers could search for the exact type and number of fish needed for their guests’ dinners.   No waste in effort, time, or resources (fish not on the menu appreciated that).  The diver knew the depth and location to find the type and size of desired fish.  An exceptional investment advisor will find those investors and companies that most value a specific client’s offering.  Through use of the “5 Whys” and other analytic methods (e.g., Porter’s 5 Forces) to build a well-defined target profile, the advisor will quickly identify superior matches for each client.

4) Leverages global reach and local insight

In searching for their client’s best investment candidates, it is sometimes more efficient and expeditious for advisors to contact corporate, institutional, and private investors with whom they regularly do business – “the usual suspects.”  Because of established trust and understanding regarding these investors’ preferences and capabilities, advisors will work within their established networks.  That’s understandable.  But, the best strategic partner, the one that may most value the client’s offering is often not within any investor’s direct set of contacts.  The best advisor is one who will leverage an expansive global investor network that connects multiple industries.  Investors who most value your offering may be in Singapore, Prague, Estonia, or Shanghai.  An exceptional investment advisor will leverage access to trusted M&A colleagues with deep understanding of financial markets, industries, and companies in each region of the world – allowing them to open discussions with new investors and corporate networks that promise to hold greatest interest in the deal.

5) Takes business, personally

If the human body is 60% water, I surmise at least 60% of a company’s value is its people.  Or maybe, applying the Pareto Principal, 80% of a corporation’s value is its people.  A good investment advisor is constantly mindful that M&A success depends on people to embrace and support implementation – before and after the deal.  Having been an entrepreneur, and having worked to grow small businesses for nearly twenty years, finding a phenomenal, successful M&A match helps to improve the lives of people in each company.  Or, it should.  Cultural rifts and redundancy layoffs can destroy the deal, its value, and peoples’ lives.  Applying the previous four facets helps create and expand deal value.  An exceptional investment advisor knows that business is personal, and that the company’s greatest value asset must be supported, nurtured, and challenged.  A successful M&A deal will do that.

There are many exemplary investment banks and advisory groups around the world.  Whether it be a top-tier large firm, or one with a boutique focus, these firms have phenomenal analytic research, and deal-making talent.  I know this from my own experience.

My only suggestion is that you chose an investment advisor who also possesses the five qualities mentioned above.  If you do, I am confident you’ll capture exceptional value in your deal.

If you are looking to optimize the value of your investment within an operation, I encourage you to evaluate ONEtoONE Corporate Finance: a firm dedicated to provided the highest value services to their clients through transparency and professionalism. For more information click the button below.

reasons to sell a business

Reasons to sell a business

The professional life of a business owner is made up of different stages that are constantly being overcome. The question is: which is the last stage that the business owner should reach? Usually, this happens when the following conditions come together:

  • Having reached professional and economic success.
  • Being relatively close to retirement.
  • Feeling dissatisfied and unhappy towards your business or work.

When these patterns come together, we are clearly in front of a situation that requires a change in the focus of life. This means that probably the original purpose from which the company was created has already being achieved, and hence its value has been lost. This is when the moment of considering a new life purpose, that goes in accordance with the current situation of the businessman, arrives. At this point, many reasons to sell a business may start to appear in the mind of a business owner.

selling process of a company

Two main reasons to sell a business

Working in our sector, we have witnessed wonderful stories of different business owners that have explained to us the main motives why they were selling their company. Usually, there are two types of reasons, economic and personal. Maybe you can relate to some of them. Let’s take a look:

Economic reasons:

  • A new competitor: We have seen many cases in which, within a sector, big corporations were acquired by strong venture capital institutions. This may be a scary trend for business owners that compete against such organizations, since they have less resources to stay in line. Therefore, this situation gives them a good reason to sell their business.
  • Decreasing profitability: This is always a strong sign for selling a business. In some cases, we have witnessed that the aggressive competition in the industry threatens companies that are not well structured internally. Therefore, they become less profitable with time. Don’t let his happen and read the signs, you might still be on time.
  • Need of capital injection: We live in extremely fast advancing times. For some businesses, it’s hard to adapt to the evolution of the industries, since this requires a huge investment. Competition may evolve faster and put your business in danger. The need of capital is a good reason to consider selling your business.

Personal reasons:

  • Retirement: This is one of the most common reasons for a business owner to sell their company. Many owners have gone through a long path to build their company from scratch. It is hence normal for a business owner that has reached professional maturity, to feel tired and in desire of some peace and quiet at last.
  • Change of lifestyle: This motive goes in hand with retirement. Business owners usually seek fulfillment in other aspects of life once they reach professional maturity. Some want to dedicate themselves to giving back to society, others want to spend time with their family, and others simply want to enjoy the perks of a good life.
  • Health Conditions: Owning a business is extremely stressful and requires the person to be in an optimal state of health. Sometimes, nature denies this privilege and selling the business may be the best option to avoid losing all the effort and investment of a lifetime.

These are some of the main reasons to sell a business, but the important question is: how would the business owner feel after the sale?


The after-taste

After selling the business, many business owners stop experiencing the sensation of dissatisfaction and unhappiness. They are able to make a decision that allows them to confront a new professional challenge. Moreover, they can choose to do something that contributes to society and their loved ones.

Despite this, many business owners fear to finish their professional stage. It is common that they have uncertainty about what might happen after the sale. However, once the company has been sold, the businessman enters a new phase in his life full of freedom. Now that they have complete control of their time and resources, they can focus on their life, new objectives, and even dreams.

Moreover, the predominant sensation is of pride and satisfaction thanks to a good company valuation and a successful sale. The business owner sees how the efforts and hard work are recognized and will continue to deliver results for many years to come.

Having said that, if you need further information about the selling process of a company, we put at your disposal our team of highly qualified advisors. When there are more than a few reasons to sell a business it’s time to ask yourself “the” question.

m&a advisors
business acquisition

Business acquisition: Kinepolis reaches agreement to acquire Spanish cinema group El Punt

The Benelux and Spanish teams of ONEtoONE Corporate Finance are pleased to announce the success of a new advised business acquisition. Kinepolis Group, a pioneering enterprise within the cinema industry, has acquired two cinema complexes belonging to Group El Punt.

As a result of this transaction, Kinepolis acquires the `Full Cinemas´ megaplex in Barcelona, the second-largest cinema in Spain, which has 28 screens, 2,687 seats and welcomes more than 1.3 million cinema-goers every year. In addition, Kinepolis gets `El Punt Rivera´ in Valencia, which has 10 screens, 2,528 seats and attracts more than 300,000 visitors annually.

Prior to this business acquisition, Kinepolis Group already had 6 cinemas in Spain. Following the latest transaction, the company will run the three biggest cinemas in Spain: Kinepolis Ciudad de la Imagen in Madrid, Full in Barcelona and Kinepolis Valencia. In total, Kinepolis Group currently operates 97 cinemas (45 of which it owns) worldwide, with a total of 852 screens and more than 185,000 seats.

“This acquisition reaffirms ONEtoONE´s expertise in cross-border transactions, thus providing extra value to build-up processes.”

– Dominique Gazel-Anthoine, Managing Partner at ONEtoONE Spain

“This acquisition demonstrates the strength of our international network to initiate and advise meaningful M&A transactions for Belgian corporates. Our local approach is also very appreciated by Board and ExCo members during the negotiations.”

– Antoine van den Abeele, Managing Partner at ONEtoONE


Find out in our article how to attract more clients as an M&A advisor!

The Crux of Acquisition Due Diligence: Working Capital & Investements

Due Diligence: Working Capital & Investements

Previously, we have explored the concept of Due Diligence its importance throughout the process of buying a business. In the following article, we will explain two important aspects to analyze during this crucial phase: The concepts of working capital and other investments.

The Working Capital

We recommend that in the due diligence process that you pay special attention to the working capital (current assets and current liabilities). As such, you must compare the situation with the company’s current assets and liabilities with the two previous years and see if there are significant variations. If there are, they may be making “arrangements” to make the company appear to be worth more than what they truly are.

1- Collection days: It is a ratio that tells us the number of days that acompany takes to charge its customers. If the collection days are getting longer, you may be exposed to a payment problem. It may represent more sales and profits in the income statement, but customers in reality will not be paying as stated. Resultantly, there will remain the possibility that you will face a future liquidity problem. Moreover, the company might have increased its sales a lot, but achieving this so to be able to show a temporary increase in clientele is a rather futile and useless concept to a potential acquirer. Adding to this, if the days of collection have shortened a lot in recent months, the seller may be intentionally accelerating the collection so to increase cash levels in the short-term and in turn, increase the valuation of the company at the time of sale. If this is the case, the company you seek to acquire will be taking money that is yours away from you, and you will be left with an empty space.

2- Stocks: It is a ratio that tells us the number of days of purchases that a company has in store. If we have 60 days of stocks, everything that will sell in the next 60 days can be considered as in stock. If the stock days have lengthened in recent times, you may have a lot of obsolete material that has no outlet. If they have shortened with respect to previous years, the seller may have sold stocks in an accelerated manner so to increase cash levels in a bid to either take it for themselves, or add it to the sale price.

3- The days of payment: It is a ratio that tells us the number of days that the company takes to pay its suppliers. If the ratio is 60 days, it means that everything that has been bought during the last 60 days has yet to be paid. If paydays have shortened, suppliers may not trust the company, along with their financial situation and in turn, are being required to pay cash if they want to be sold their required goods. Another alternative is that they are mismanaging their payments (making them too soon), in which lengthening the payments out would allow an increase in cash generation. If a company lengthens the days of payment, it may mean that it is delaying payments so that there is more cash at the time of sale, so to increase its value.

If you see inconsistencies between these ratios and those of previous years, you should investigate further and look for an explanation. It is good that you also compare data from the competition (days of collection, payment and stocks) and see if there are significant discrepancies (there should not be, but if there are, you should analyze why). Companies like INFORMA or AXEXOR can provide you with the key figures of their main competitors, all based on the information that they present in the Mercantile Registry.

If you see that there are clear inconsistencies in the working capital that are affecting you, you should propose a lower purchase price that eliminates the effect of the manipulations. You are looking to buy a company with a stable working capital, not one that has been manipulated last year for sale.

If the company’s sales are seasonal, do not use the end-of-year working capital fund, instead you will have to calculate the working capital average and the debt of all the months so to have a real vision of the company. Importantly, if you buy the company when the activity and cash levels of the company are low, you will have a problem financing the growth of the balance sheet as money is needed to buy stocks and pay suppliers.

Other Investments

Another place to look for discrepancies is in investments with fixed assets (machinery). The seller may have delayed these investments so that there is more cash in the company, of which he can take for themselves before the sale. This impacts you because you will be the one who has to replace the asset that has been taken. Therefore, if you see that in the last year there was less investment in fixed assets than in previous years, look for why.

Perhaps the machinery is more obsolete than the amortization tables show and it is urgent to replace it to remain competitive. You can find yourself buying the company thinking that you do not have to invest for three years and, the day after being announced as the new owner, discover that you need to urgently make a purchase of machinery to compete.

Do not stay rely on the document presented with the results of the due diligence, review every aspect with the team responsible for analysing the company and ask them about each individual area; the toad may be hidden in one of the pages of the document and go unnoticed if the auditors do not explain it in detail.

Look for tracks that sound strange, try to find inconsistencies even if they are small and then pull the thread. All the time that you dedicate to this will help you to better understand the company and, sometimes, to avoid disappointment.

You should also investigate other issues that do not appear on the balance sheet: lawsuits against the company, contracts, credit to customers, agreements with employees for payment in undeclared money or commitments of future variable salary, etc.

If the facilities belong to the partners, look carefully at the lease paid by the company. Make sure that the results shown to you regarding rent are not represented well below the market value, which has the capacity to reduce cost levels and artificially increase the buying cost of the company.


All these inquiries that have been mentioned can be decisive for the future of a company, and it is possible that you cannot carry out a certain type of analysis without the help of an expert. If you need a guide and a reliable team with which to carry out this phase of buying a company, do not hesitate to contact us!


How do I get my employees to change?

Change is not a matter of time, it´s a matter of commitment.

If you want to provoke change, create a proper culture. Instead of taking control, give it away. In order for you to create a proper culture you must reduce control systems. Control is achieved when people control themselves.

Don´t give orders, but ask questions like: What would you do? What do you suggest? It´s not an easy task, but you must control your tendency towards giving orders or transmitting messages that undermine the propriety and responsibility of your subordinates.

Don´t just preach and hope a proper culture will develop itself, you must cultivate it and implement schemes that bestow authority and allow each employee to feel entitled. You must be very clear on who´s responsible in order to avoid the employee´s tendency towards delegating decisions to upper levels. Give the authority to decide to those who receive the information, instead of moving the information toward the authority, move the authority toward the information.

There´s a natural resistance to change that makes many strategies fail. To create change in your organization, you must apply the following formula:

Amount of change = Dissatisfaction + Vision + Process – Cost of change

Dissatisfaction: to create change you must produce an atmosphere of dissatisfaction with the current situation and generate feelings of need for change. On occasion, creating a crisis and setting a sense of urgency works.

Vision: a powerful vision is a great ally for change. An ambitious challenge bonds the team together and stimulates it to reach the goal.

Don´t try to convince others on the need for change with numbers and statistics, do it with visual evidence as visuals are very powerful. Make the team personally experience the pain that the client feels due to our current way of operating.

Process: Involve your employees in the decision. Change will be seen as the enemy when you suggest it to your team, but will be embraced as an opportunity if your team proposes it. They´re the ones who must set their own goals, so they´ll commit themselves and you can demand their completion on the dates set for each challenge.

Don´t try to change everything all at once. Break down your ultimate goal into smaller, specific and achievable objectives. You can´t eat an elephant all at once, but you can do it piece by piece. Start with a leg. Use metrics and short-term milestones to gauge progress.

Cost of change: to create change you must first understand the points of resistance: What do people lose with this change? It´s natural for there to be resistance, because you´re taking them out of their comfort zone. People are comfortable with what´s familiar and anything new makes them anxious. They´ll believe the new situation poses risks or it can hurt them.

People only change once they understand the pain that the lack of change can produce in them is greater than the discomfort they feel from the need to change. People are comfortable with the status quo and fear new ideas.

Once you´ve got everybody on board, you must create small victories, point them out and celebrate them. Small goals lead to small victories which in turn trigger a virtuous circle of behaviour.

Above all, you must over-communicate. Don´t be afraid of exceeding yourself, you´ll never communicate too much. You´ll be surprised at the number of misinformed people that still exist, even after repeated internal communication.

In an organization where I worked, I thought I had clearly conveyed the strategy. To confirm this, I asked all members of my team to write down their vision of the strategy. I was appalled by the scattering of answers and lack of alignment. Try it on your team and you´ll see.

Does everyone in your company know what your core business is? What your differential value is?

We must not only motivate them rationally, but also emotionally. People only change if their hearts change, if their hearts are touched. To touch it, they must see you put all your heart into it.

Positive examples from colleagues are contagious, as are negative ones. That´s why it´s important that you ask any toxic collaborators, those who create discouragement, to exit the team.

Enrique Quemada

Book: How to Maximize the price of my company

Five reasons to ride the M&A wave today

If you miss this wave you will be devoured as the fate of individual companies has never been more uncertain, and the window of opportunity is closing for many companies unprepared or unable to adapt to the new market realities.

There are five reasons why you should ride the current M&A wave:

1. Companies are valued by estimating their future profits. When a company is in a very profitable stage, a promising future can be projected, which will maximize its price. When it´s going through a bad phase it´s much more difficult to make an exciting future credible.

2. The economy has cycles. The key is to sell during a buoyant economic cycle, not only because the company has a higher turnover and makes a better profit during this phase, but also because buyers are more optimistic and there´s a greater abundance of money.

3. In buoyant periods, companies listed on the stock market are willing to pay more because their shares also lists at higher multiples. In economic booms, it´s also easier for buyers to obtain financing for purchases, either through banks or by issuing corporate debt, which allows them to pay even more for your business.

4. Another external element which affects your company´s value is interest rates. When rates are high, companies are worth less and when they´re low, companies are worth more.

This is because value is estimated by discounting the cash flow that the company will generate during the rest of its existence. It´s discounted based on interest rates plus a prime that represents the risk of the company not meeting its expectations. If interest rates are low, it´s discounted at a lower rate. Due to the denominator being lower, the resulting figure in the valuation is higher. This is why companies are worth more at lower interest rates than at higher ones.

5. Today money is abundant, the value of companies in the stock market have never been higher, interest rates worldwide are at the lowest level ever seen, and there is a huge M&A wave. Ride the wave before it goes.


Your greatest error is not making mistakes

Business is a game and you’re in competition with experts. If you want to win, you have to learn to be the master of the game.

Building a successful business is a marathon. You’ll have to experiment and fail. Failure is necessary to learn and to achieve success.

Don´t fear failure, learn from it. It helps you grow. The only real failure is when you don´t learn anything. Fail early on, because only those who dare to be wrong will achieve the greatest goals.

The greatest error is not making mistakes. It´s necessary to fail on the road to success because there´s no real success without failure. In fact, failure is the spice that flavours success.

A great business model helps your company to create a superior and sustainable competitive position. Good business models have redefined the profitability that can be obtained within a sector.

A great business model must integrate strategy, values and culture. Ryanair is one example. They strip flight experience and their costs model down to the basics. CEO Michael O´Leary makes it clear: “We are transparent about our rules: you won´t get a free meal, we don´t want you to check any luggage. We won´t book you a hotel because your grandmother died. But we´ll give you the lowest fares with a difference. And that´s what people really want, to go from A to B with safe transportation and at an accessible price. It´s a commodity. It´s not a life-changing experience like the other airlines would want you to think”.

Your goal is to develop a better company, for which you´ll need to explore and test new ideas and concepts, adding and subtracting elements in the model until they fit together and you´ve come up with the right formula.

If you don´t dare to experiment and to fail, if you are fearful, better sell your company because in today´s competitive environment, will not let it succeed.


Tessi buys Spanish company Graddo

Tessi had acquired a 100% interest in Graddo Grupo Corporativo S.L. and its subsidiaries.

Graddo, a family-owned company based in Madrid, which specialises in processing documents and means of payment, reported revenues of €15.5 million in 2013 with similar operating margins to those of Tessi documents services. The company has 616 employees.

Graddo, which was founded over 30 years ago and is recognised as one of the leading players in the Spanish BPO market, primarily in the banking sector. Graddo helps companies to outsource the management of their document and business processes, and offers paperless document services, cash receipt and means of payment management, and back-office processing to a wide range of customers.

Tessi is strengthening its Tessi documents services business and is opening up new growth opportunities via this acquisition, which will be immediately earnings enhancing. Thanks to its ability to provide services and technologies that are suited to all business sectors, the Group aims to establish itself as a leader on the Spanish market.
Graddo’s founders will remain as directors and will support the Tessi Group’s ambitious integration and development plans on the Spanish and international markets.
Graddo was advised by ONEtoONE Corporate Finance.

PERI sells their ApS business in Spain

ONEtoONE has advised PERI in the sale of their ApS business in Spain to MECANOTUBO (CIMBRAS Y GEOTECNIA, S.L.), a Spanish company. The German Group PERI is an entity dedicated to the installation of formwork, scaffolding systems, services and plywood.

Peri Group has conducted this action in congruity with its Strategic Plan for 2018, in which the German company has determined that its core business has always been engineering, the hiring and sale of formwork and scaffolding. The activity of ApS is deemed to be in competition with a client of PERI that operates in the field of concrete structures. As a result of this conflict of interests, PERI has come to the decision to finish this type of service, instead choosing to focus on its core business.

MECANOTUBO , CIMBRAS Y GEOTECNIA, S.L., has taken the portfolio of offerings and certain ongoing works. In addition, the managers of ApS división have became part of MECANOTUBO´s staff.