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Unauthorised Use of Dalma Capital’s Name and Details

Dalma Capital Management Limited (the “Firm”), is duly incorporated in the Dubai International Financial Centre (DIFC) and authorised and regulated by the Dubai Financial Services Authority (DFSA).

The Firm has become aware that an unauthorised entity operating under the name “D’ Finance Capital” has been misusing the Firm’s details and falsely claiming association with the Firm.

The Firm hereby confirms that:

it has no affiliation or connection whatsoever with “D’ Finance Capital” or any of its representatives,
any representations, communications, or activities undertaken by this entity are unauthorised, false, and misleading, and
it does not accept any responsibility or liability for dealings with this entity, nor for any losses or damages arising from reliance on its claims.

In line with its obligations as a DFSA-authorised firm, the Firm has:

notified the DFSA of this unauthorised use of its details;
reported the fraudulent website and materials to the relevant authorities; and
enhanced its security protocols to protect its office premises, employees, and clients.

Members of the public, clients, and counterparties are advised to exercise caution and verify any communications claiming to be from the Firm by using only the official contact channels listed on our website: www.dalmacapital.com.

Suspicious communications should be reported immediately to compliance@dalmacapital.com.

The Firm remains fully committed to its obligations under the DFSA framework and to protecting the interests of its clients, shareholders, and stakeholders.

News & Announcements

Mastering the Art of M&A Auctions: A Guide to Different Auction Process and their Pros and Cons - Zachary Cefaratti Opinion

19 March 2023

By Zachary Cefaratti

When the seller decides to follow an auction process in mergers and acquisitions (M&A), it is pivotal to structure the auction appropriately. Auctions facilitate competitive bidding, helping sellers maximize value for their business. In this article, I will share the most common types of auction processes used in M&A transactions, the advantages and disadvantages of each, and the factors to consider when deciding which approach to take.

Types of Auction Process in M&A

Broad Auction

A broad auction is an M&A process where multiple potential buyers are invited to participate in bidding for the target company. This process typically starts with a large pool of potential buyers who are provided with an information memorandum. After expressing their interest, the pool is narrowed down through multiple bidding rounds until a winning bidder is selected.

Advantages:

Higher competition among bidders can lead to a higher selling price.
Sellers have the opportunity to gauge the interest of a wide range of potential buyers.
The process can create a sense of urgency among bidders, potentially accelerating the transaction timeline.

Disadvantages:

The process can be time-consuming and resource-intensive, as sellers and their advisors must manage multiple bidders.
Confidentiality risks may arise due to the larger number of bidders involved.
Bidders may experience auction fatigue, leading to a potential drop-off in interest or reduced valuations.

Targeted Auction

In a targeted auction, a select group of potential buyers is invited to participate in the bidding process. These buyers are typically chosen based on their strategic fit, financial capacity, and likelihood of closing a deal. The process often involves fewer bidding rounds than a broad auction.

Advantages:

A more efficient process, as fewer bidders are involved.
Greater control over the confidentiality of the transaction.
The targeted selection of bidders can increase the likelihood of a successful transaction.

Disadvantages:

Potentially lower competition among bidders compared to a broad auction.
Sellers may miss out on potential interest from buyers outside the targeted group.

Two-Stage Auction

A two-stage auction is a hybrid approach that combines elements of both broad and targeted auctions. The process begins with a broad auction, and after the initial round of bids, a smaller group of bidders is invited to participate in a targeted auction.

Advantages:

Sellers can benefit from the competitive dynamics of a broad auction while maintaining the efficiency of a targeted auction.
The two-stage approach allows sellers to adjust their strategy as the auction progresses.

Disadvantages:

This approach can be more complex and time-consuming than a single-stage auction.
Confidentiality risks may still arise during the initial broad auction stage.

Considerations for Choosing the Right Auction Process

I nearly always prefer a two-stage auction. Even a two stage auction can be targeted in the first phase to deal with confidentiality, and it is the job of a good advisor to manage the additional complexities and time needed for a two-stage auction.

Other factors that need to be considered in how to structure the auction include:

Market conditions: The choice of auction process may be influenced by the state of the market and industry dynamics, with broader auctions being more suitable in a seller’s market.
Confidentiality requirements: If maintaining confidentiality is a priority, a targeted auction may be more appropriate.
Transaction timeline: If time is of the essence, a targeted auction or a two-stage auction may be more efficient than a broad auction.
Buyer universe: The number and diversity of potential buyers in the market should be considered when choosing an auction process. A broad auction may be more suitable when there is a large pool of potential buyers.

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