Equita buys corporate finance firm K Finance in €7m deal

The value of the deal is €7m, of which €6.5m will be paid at closing – with a mix of debt, cash and treasury shares of the Equita Group – and €500,000 as an earn-out, subject to the achievement of specific net profit targets for the fiscal years 2020 and 2021. The deal includes a put and call options for the remaining 30% stake in the company, which Equita can exercise four years after closing.

K Finance’s founding partners Giuseppe Renato Grasso and Filippo Guicciardi will continue to lead the business as co-CEOs, reporting directly to Equita Group CEO Andrea Vismara.

K Finance will continue to operate from its Milan office and will be rebranded as Equita K Finance.

With this merger, Equita expects to benefit from the strong synergies with K Finance activities, the long-standing experience of the firm with private companies and its expertise in mid-market transactions. K Finance will benefit from potential cross-selling opportunities, offering to its clients equity and debt capital markets services, debt advisory and alternative asset management solutions provided by Equita.

K Finance has more than 20 years of experience in corporate finance advisory, specialising in M&A transactions with Italian corporates and private equity firms. 

The firm executes approximately 10 M&A deals and generates revenues of more than €6m and net profit in excess of €1.5m per year.

Equita was assisted by Dentons Studio Legale Tributario as legal adviser and by KPMG for accounting and tax due diligence.

K Finance founding partners were assisted by Pedersoli Studio Legale as legal adviser and by Studio RDRA as tax adviser. Equita and K Finance were also assisted by their internal M&A advisory teams to structure the transaction.

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