Traditionally, Cypriot businesses, mostly family-owned, did not prioritise Mergers and Acquisitions (M&A) for growth, development, or value realisation. This was due to emotional reasons and a lack of options. However, there is now a strong interest and increased activity in M&A, driven by competitive pressures, internationalisation, increased liquidity, and other factors pushing companies to evaluate these opportunities.
Decisions regarding such transactions are now based on three pillars:
- Accurate data analysis concerning the transaction.
- Knowledge in the specific field of activity.
- Strategy implementation and its impact on the operations involved.
In this environment, where quick and informed decisions are crucial, KPMG in Cyprus has enhanced its transaction services team with various specialisations, including financial, tax, legal, and real estate expertise.
Serving as the exclusive advisor to Halma plc, KPMG in Cyprus' transaction advisory team contributed significantly to the successful completion of the acquisition of FirePro. In this strategic move, KPMG in Cyprus provided comprehensive support, including financial and tax due diligence, transaction structure optimisation, tax clearance for the Group's companies, and strategic asset separation based on Halma plc's strategy.
KPMG in Cyprus' team, with its unparalleled experience, ensured the effective completion of the transaction, mitigating risks that could have delayed or halted the process. Halma plc is a global group of life-saving technology companies listed on the London Stock Exchange (FTSE 100 index). It consists of a portfolio of nearly 50 companies focused on providing innovative products and services that help solve many of the key problems facing the world today. This acquisition aligns with its growth strategy, as confirmed by the former Group Chief Executive of Halma plc, Andrew Williams, on 29 March 2023:
“The acquisition of FirePro represents a valuable addition to our portfolio of fire detection and suppression solutions. Its technologies provide a sustainable alternative to established pressurised gas fire suppression solutions. We are delighted to welcome FirePro to Halma and look forward to working with the team to expand FirePro's global impact.”
KPMG's valuable contribution is further affirmed by the Managing Director of FirePro, Avgoustinos Avgousti:
"KPMG in Cyprus contributed significantly to the successful completion of the transaction. The process proceeded smoothly, and any issues or difficulties were identified and handled appropriately within the predetermined timeframe."
The creation of value from a transaction depends heavily on a thorough evaluation process, which should identify the risks and challenges of the transaction before its completion and in the subsequent implementation phase. Accurate analysis and understanding of the synergies arising from a transaction are critical to achieving maximum value. Collaborating with expert advisors, such as KPMG in Cyprus, ensures a smooth transition and successful integration of the activities of the companies involved. This approach enhances growth potential and maximises the exploitation of expected synergies.
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