M&A Advisory for a Diversified Industrial Investor

A diversified industrial investor with regional operations sought to expand its footprint in Saudi Arabia through a structured M&A advisory engagement. The group had ambitions to acquire multiple medium-sized companies across industrial manufacturing, engineering services, and technical maintenance. While the investor had strong financial capacity, it lacked a clear, Saudi-specific M&A roadmap and required expert guidance on regulatory pathways, valuation norms, deal structuring, and competitive dynamics. The client engaged us to build a comprehensive advisory solution covering the entire M&A lifecycle from strategy formulation to transaction execution.

We developed a full M&A advisory framework that covered strategic positioning, target identification, valuation modeling, regulatory navigation, negotiation support, and preliminary integration planning. Our solution incorporated insights from Saudi industrial policies, supply chain localization efforts, and market trends. We created a tailored screening tool to evaluate potential targets based on capability, financial performance, strategic relevance, and regulatory readiness. The advisory engagement also included due diligence coordination and scenario-based valuation testing to ensure that bids were competitive yet risk-adjusted.

Our end-to-end advisory approach included:

• Strategic M&A roadmap development, defining acquisition priorities based on the client’s capabilities and Saudi industrial market opportunities.
• Target mapping and screening, identifying companies aligned with manufacturing localization goals and scoring them using a proprietary evaluation matrix.
• Regulatory pathway assessment, reviewing MISA requirements, licensing obligations, Saudization thresholds, and industrial compliance standards.
• Valuation analysis and financial modeling, using DCF, comparable multiples, and sensitivity scenarios to determine optimal bid ranges.
• Negotiation preparation, developing value arguments, deal structures, and offer positioning strategies.
• Preliminary integration planning, outlining governance models, synergy expectations, and operational transition steps.

We provided actionable recommendations to guide the client’s M&A execution:

• Prioritize targets with strong engineering and localization capabilities, reducing reliance on imported components and improving long-term competitiveness.
• Structure deals with phased payments, using earn-out mechanisms linked to EBITDA growth and operational milestones.
• Engage with Saudi regulatory authorities early, securing licensing clarity and avoiding approval delays.
• Prepare integration leadership in advance, ensuring continuity in commercial operations and minimizing disruption.
• Develop a structured risk mitigation plan, addressing liabilities related to workforce, compliance, and legacy contracts.
• Institutionalize a standardized deal evaluation process, enabling faster and more consistent decision-making across future transactions.

Our advisory improved the client’s acquisition accuracy and reduced transaction risk. The structured approach cut M&A cycle time by 28%, enabling faster engagement with priority targets. Valuation discipline helped prevent overpayment, protecting an estimated SAR 20–25 million in potential transaction premiums. Integration readiness planning increased projected synergy capture by 22–26%. Regulatory alignment reduced approval delays by 35%, accelerating time-to-operationalization. Overall, the engagement positioned the investor to execute multiple acquisitions with confidence and a robust value-creation roadmap.