International merger and acquisitions company BCMS is commencing operations in Israel. The company plans to expose small and medium-sized businesses to hundreds of potential foreign investors. The company's representatives in Israel are Doron Ephrati and Hilit Ben-Zvi, founders and partners in business consultancy firm Head-On Business and Marketing Navigation, of which Ephrati and Ben-Zvi are co-CEOs.
BCMS, a British company founded 25 years ago, operates in 25 countries around the world. Owner and founding director Dave Rebbettes has visited Israel a number of times in recent months ahead of the company's launch in Israel. BCMS's Israeli representatives say that since the company was founded, it has been involved in mergers for 500 companies worldwide, following the companies' exposure to hundreds of potential investors, while generating extremely high profits through the deals. In a talk with "Globes," Ben-Zvi and Ephrati said that 10-15 small and medium-sized companies in Israel would enter the M&A processes with overseas investors during the coming year.
The overseas target companies have annual turnovers of NIS 50-250 million. The volume of activity usually determines which small and medium-sized companies in the US and EU are selected for M&As. In Israel, the annual activity volumes used to select small and medium-sized companies are different: a business with turnover up to NIS 25 million is considered a small business, and a business with a NIS 25-100 million turnover is considered medium-sized.
"There is a great deal of appreciation for Israeli high-tech, and Israeli industry in general, among overseas investors. They understand that there are other companies in places where Head-On is involved, such as Waze. This is what led BCMS to extend its business to Israel," Ben-Zvi says. "The Israeli market is small, and up until now, most M&A deals have involved two or three potential players, so that the main supplier or competitor of the company up for sale is the one that eventually makes the acquisition. In the case of BCMS, the group of potential investors is much larger: a group of 200-250 possible investors from all over the world will take an interest in the company. BCMS's previous deals around the world show that following the initial interest shown by investors, about 30 of them will go on to more advanced stages in the process and in pricing. The broader the competition for a company that is up for sale or merger, the bigger the profit on the deal."
According to Ephrati, BCMS plans to recruit investors from all over the world for Israeli companies in diverse field, excluding real estate. "There are companies in Israel with substantial potential, including companies whose problems have been in the headlines over the past year, such as Pri HaGalil and Harsa, even though they have good and suitable infrastructure. In a crisis, these companies almost always ask for aid from the government; had they turned to international investors, they would have gained exposure to new markets and been more successful. We believe that you don't have to run straight to the government asking for help. We're already leading three projects of helping Israeli companies in the process of exposure to foreign investors."
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2015
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