Despite the challenges posed by the sudden outbreak of the pandemic, learn how Kroll collaborated closely with ViajaNet's senior management team to restructure their financial model and business strategy.
Founded in Brazil in 2009, ViajaNet has built an enviable reputation in the industry for its offering of a plethora of tourism-related facilities, including airline tickets, pre-assembled travel packages, hotel stays, travel insurances and more.
In early 2020, ViajaNet partnered with Kroll to adopt a strategic and traditional approach towards M&A and initiated marketing activities. However, the sudden outbreak of the pandemic in February of that year posed unforeseen uncertainties and challenges. In response, Kroll experts joined forces with the Company’s senior management team to restructure the financial model and business strategy.
To illustrate ViajaNet's potential as a leading player in the Brazilian tourism space, Kroll emphasized the Company's strong and loyal customer base, technologically advanced processes, and its ability to leverage the momentum once the global markets reopened for tourism. These factors were highlighted to attract both strategic and financial investors. Kroll was tasked with the challenge of finalizing a transaction for the Company that would need to be completed within an acceptable timeline and transaction terms.
The proposed solution was either a capitalization from a financial investor or a sale to a strategic player. The crucial factor was to ensure a successful transaction that would benefit all stakeholders, including shareholders, employees and clients.
Ultimately, Kroll successfully brokered a transaction with Despegar, a highly competent strategic player with a rich understanding of the Brazilian market. Despegar.com, an industry leader in the online travel sector, operated across 20 different countries and offered a comprehensive suite of travel products. The online travel company possessed two primary brands: the global Despegar and the Brazilian Decolar. It was apparent that Despegar could leverage ViajaNet’s business.
The transaction achieved by Kroll catered to the needs of their client and, in particular, its investors, who sought a more viable exit strategy. Kroll identified the best buyer profile, which in this case was a strategic buyer. This presented an excellent opportunity for Kroll’s client to sell the Company to the highest bidder, with the assurance of obtaining fair market value. Kroll's experience and expertise in the transaction advisory space were crucial in completing the deal within a reasonable timeline, making it a success for all parties involved.
“ Kroll was the right advisor for Viajanet. We had a complex cap table, and investors with both, strategic and financial, angles and objectives. Completing a tourism-related transaction with the pandemic period was a high challenge that demanded Kroll team patience and to identify and negotiate with the ideal investor. Kroll team worked closed with, understanding our needs and also to find the best available transaction. Identifying the right buyer and helping us to demonstrate the company’s strong points and where the buyer would get synergies with the transaction was of paramount importance.”
The Impact
As a trusted advisor, Kroll experts assisted their client in identifying suitable acquisition targets or buyers, thereby amplifying their deal pipeline and substantially improving their chances of finding the appropriate match for a sale. Throughout the transaction, the team provided insightful and strategic guidance, ensuring that their client’s Company and its shareholders' momentum were in sync with their M&A activities and broader business objectives.
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