Nature of Work
M&A (Stake sale to a US company)
Challenge

Power Band were the largest adhesive tape manufacturers in India accounting for almost 200 crores export including Walmart. Intertape Polymer, a large listed US/Canadian company wanted to buy a stake in the company. Since the company was 100% family managed, Power Band’s main challenge was twofold: ratio for stake holding and decision over who would be responsible for growing the Asian market.

Mantraa’s Solution

Since the company was family managed, Mantraa worked with them to understand and consolidate their strengths. We guided them for Info Memorandum, Valuation guidance, Term Sheet guidance, forecast and business plan. Detailed negotiation with Intertape Polymer lasted for 14 months. The entire process was intensively undertaken especially with valuation on the basis of actual profits upto march , Due diligence process, Closing and True up requirements of the RBI, requirements of the foreign parties, agreements structuring and finally tax payments.

Result

Mantraa helped secure the right deal successfully with Intertape Polymer finally buying 76% stake in Power Band.

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