Due Diligence and M&A
Navigating the semiconductor industry?
Yole Finance is a dedicated team that works with Yole Group’s 100+ analysts to support our industrial and financial customers in the evaluation of companies. As well as providing this due diligence service, we also manage the complete merger and acquisition (M&A) processes, whether on the buy or sell side.
Yole Finance focuses on due diligence and M&A projects in the semiconductor, photonic and electronic industries. We provide added value by virtue of our unmatched knowledge of the overall industry – from markets to applications, technologies to supply chain –, our strong network of contacts and our ability to find appropriate M&A targets.
Yole Finance carries out due diligence projects by putting together the best personnel from Yole Group’s different companies – Yole Intelligence, PISEO, Yole SystemPlus – to perform the most pertinent and detailed analysis of a target company. We deconstruct the business plan and re-build it based on Yole Group’s analysis of market dynamics and the company’s potential impact on its competitive environment. This data is complemented by a complete semiconductor analysis.
Yole Group analysts also apply their expert knowledge to carrying out complete M&A processes. In contrast to typical investment banks, we can also identify targets, analyze companies and provide innovative approaches and ideas for implementation in the semiconductor supply chain.
OUR ADDED VALUE: IT ALL COMES DOWN TO KNOWLEDGE
Over a quarter of a century working in semiconductors, photonics and electronics has given us in-depth knowledge of the industry’s companies and key persons. We understand and monitor every detail in technology development and supply and value changes in a complex industry environment – not to mention how the semiconductor market segments as a result. We combine financial analysis with a deep understanding of technology and the supply chain, as well as market opportunity and the competitive landscape. Hundreds of projects and deals have fully benefited from Yole Group’s knowledge. Adopting innovative ideas and new approaches gives you the ability to fully grasp all the aspects of a company’s value.
Expertise Built over 25 Years
Our Talent: Technology and Market Expertise
We have over 25 years of semiconductor market research and consulting experience across over 100 analysts. We can leverage this deep well of knowledge to deliver marketing risk analysis, as well as comprehensive commercial, market, and technical due diligence. You also benefit from target lists for M&A, partnerships and joint ventures, where we have identified market, technical, and manufacturing opportunities to strengthen value creation.
Our deep involvement in the semiconductor, photonic and electronic industry provides us with a unique ability to analyze a company’s positioning in the competitive landscape. We intuit disruptive trends and their associated opportunities and risks. Yole Group has over 100 analysts working day to day in their respective fields of expertise, keeping abreast of all the developments to provide you with the most up-to-date analysis, competitive developments and new opportunities.
Our Bedrock: Industry and Client Network
Yole Group’s close relationships with semiconductor, photonic and electronic companies and their R&D, marketing, and strategy teams – along with their supply chain executives – enable us to identify shifting markets and competitive dynamics before they unfold, anticipate technical trends and quantify the impact to financial forecasts.
Using our network of contacts, we can connect counterparties for M&A, new capital requirements, partnerships, joint ventures… and provide you with access to sources of capital from our network of PE, banking, venture capital, corporate venture capital and governments.
Throughout Europe, North America and Asia, we can draw from our complete network to help you implement your company’s next financial and strategic moves.
Thinking of investing in or buying out a company? We conduct commercial, market, industrial, supply chain and technical due diligence for private and public equity investments or acquisitions in the semiconductor, photonic and electronic industry.
A typical due diligence analysis includes the following key items:
- summary of business plan deconstruction
- industry and technology overview with key company differentiators
- historical/forecasted market – detailed total available market and served available market, based on the company’s product portfolio and future developments
- supply chain overview, identifying strengths and weaknesses
- competitive landscape and competitive analysis of the company
- business model overview and possible impact on future company developments
- key customer analysis and risk identifications
- technology assessment, including IP if applicable
- rebuilding a business plan based on the company assessment, its cost structure and the related CapEx and potential delays in operations
- growth potential beyond the plan
- additional risks and opportunities
- exit strategies.
As part of the process, we draw on our vast network of contacts to conduct market and customer interviews that we then integrate into our findings.
We maintain a regular exchange of due diligence findings and prioritization of topics, and regularly share intermediate work results and draft reports with you.
We work with your stakeholders as directed – bankers, accountants, attorneys or other constituents – so that we can answer all of your questions and share important analysis and data, from the beginning to the end of the project.
SELLING YOUR BUSINESS
We lean into our robust technological background in the semiconductor, photonic and electronic industry to manage a complete disinvestment process for small and medium size companies. We also draw from other resources:
- we work with corporate clients
- we call upon financial and strategic referrals
- we leverage partnerships with several investment banks as needed.
The Yole Finance team, with the support of the Yole Group’s over 100 analysts, is uniquely positioned to understand your technology, products and added value.
They are experts in collating that intelligence into a comprehensive Information Memorandum with which to reach potential acquirers worldwide and pitch the project to the right persons.
We manage the complete project, working with you through all the phases of the sell-side M&A process. We pledge to support you with the right persons and advise you all along this very complex journey.
A typical process goes as follows:
- Develop the Executive Brief and Management Presentation
- Prepare the information memorandum, teaser, Process Letter, NDA, VDR and other standard required documents
- Define the potential enterprise value, based on financial forecasts and last comparable
- Build the list of potential buy-side targets, including financial and strategic targets, and qualify every potential candidate
- Prepare and manage the data room
- Support our sell-side clients throughout the due diligence process to provide relevant information and organize the process
- Manage the process with the buy side
- Provide potential buyers with a deeper understanding of the market, technology and business of our sell-side clients
- Analyze the purchasers’ ability to close the deal
- Work with the client’s internal teams and any other advisors as directed
- Finalize the deals in a timely manner
Yole Group’s expertise in the semiconductor, photonic and electronic industry is of strong added value in such a financial process. We only work on projects we choose, with trust and performance as our watchwords.
BUY SIDE TRANSACTIONS
THE NETWORK EFFECT: BUYING OUT A COMPANY
Yole Group’s team of over 100 analysts provides us with the knowledge that is essential in screening, identifying and evaluating potential targets to meet your company’s precise M&A criteria – anywhere in the world.
As our analysts speak English, Mandarin, Cantonese, Japanese, Korean, German – and even French – we have direct access to both the knowledge needed to identify the companies as well as the key personnel (board level, investors, corporate management). We’re also able to pitch an M&A project and evaluate the possibility of structuring an acquisition.
We provide you with all the support you need to assist in a possible transaction, including developing:
- target Lists of possible acquisitions
- commercial and technical diligence
- financial analysis.
We initiate communication with the target companies and perform a preliminary analysis to determine if the target is a good fit.
Alongside the consulting and assistance in signing definitive agreements, we can then advise you with regards to:
- commercial due diligence
- market assessment
- technical analysis
- financial analysis
- negotiation process.
When a target is willing to move forward, we support and advise you with respect to the financial form and structure of potential transaction(s) and in the preparation of one or more Letters of Intent (LOIs).
A key aspect of our work is to advise you with regards to negotiation strategy and tactics and, if requested, to participate directly in such negotiations. We are accustomed to working with selected accountants, attorneys and investment teams as directed by you. If needed, we can also be part of the due diligence process to evaluate the targeted companies – given that we have the right knowledge and added value.
At Yole Finance, we are also able to analyze how to maximize the financial value of your project or company during a fundraising process.
We can evaluate and restructure business plans in order to present a coherent project from different points of view:
- market forecasts
- human resources
It is also important to examine the competitive environment and a company’s position and added value in that environment, alongside a complete semiconductor market analysis.
After elaborating your business plan together with you, we introduce your fundraising project to potential corporate investors or financial organizations. We then manage the fundraising process up to the closing of the financial transaction. This includes defining exit strategies and identifying retainable vs. sellable assets, before and after acquisitions.
Yole Group’s expertise in the semiconductor, photonic and electronic industry is of strong added value in such financial processes. We only work on projects we choose, with trust and performance guiding us in every aspect.
LATEST PROJECTS AND SUCCESSFUL DEALS
Support in the IPO of companies
Providing complete commercial and industrial analysis (official documents, VDD): several SPAC for lidar companies, SiC and GaN companies
1. Acquisition of Muquans by iXblue (June 2021) - Quantum instrumentation 2. Acquisition of Sensonor by Safran (Octobrer 2021)
Commercial, technical, industrial and strategy/competitive due diligence analysis
1. CDD and strategy consulting for major PE client evaluating the acquisition of storage company 2. CDD for a PE client related to the acquisition of a micro-controller business
1. M&A advisory for a major semiconductor equipment supplier – included CDD of numerous assembly and test equipment suppliers 2. M&A advisory for one of the world’s largest camera module suppliers 3. M&A advisory for a $20B China-based PE firm with multiple funds allocated to semiconductor acquisitions
They Trust us
A Project?Contact us
Yole Finance Team
CEO at Yole Group