Buy-Side Advisory for a Bank Acquisition
Sharia-compliant investment company
A Sharia-compliant private equity, venture capital and real estate investment company with more than USD 2 billion under management set out to acquire a commercial bank. ALP acted as buy-side adviser through the purchase, the regulatory approval and the setup of the bank's operations.
Scope of work
Financial feasibility assessed, covering cost, capital structure and return analysis, with business and strategy planning delivered across multi-year business plans, financial projections, sensitivity analysis and valuation methodology.
Pre-offer evaluation completed covering synergies, investment strategy, key risk drivers and downside scenarios with their mitigation.
Regulatory approval obtained through the change-in-control process:
- Share purchase agreement prepared and signed
- A complete regulatory business plan produced
- Application submitted to the FSRA, with its review coordinated and queries answered
First hundred-day plan prepared covering the operational setup of the bank:
- Human resources, appointment of key personnel, handovers and HR consultants
- Evaluation of current capabilities and controls
- Reporting, submissions and regulatory approvals
IT infrastructure planned, including appointment of IT consultants, an architecture blueprint, assessment of the Sharia compliance of the IT systems, and identification of new capabilities and system upgrades.
Business planning delivered for the acquired bank, covering market gap analysis and product design.
Outcome and value
- The investment completed with regulatory approval secured.
- An operating plan in place from day one rather than built after completion.
- Sharia compliance assessed at system level as well as product level.
- A growth strategy developed for the bank following the acquisition.