Delivering Deal Value

Many companies don’t achieve the full value of a merger due to poor integration

Corporate and private equity buyers/sellers need to understand the main business drivers and key areas of opportunity to deliver value from transactions as quickly and efficiently as possible. Research shows that most mergers and acquisitions (M&A) fail to meet the expectations set for them. Despite the best intentions, deals often fall short when the time comes to begin translating carefully developed strategy into the right mix of people, process and technology.

Smart buyers can take steps to improve their odds. Perhaps the most important is to ensure a fast-paced integration that makes early use of disciplined planning, a well-coordinated launch, and a relentless focus on the key value drivers behind the deal.

Our transaction and industry professionals help ensure that transactions are handled with speed, focus and attention to detail. We help clients execute rapid integrations to achieve desired synergies and allow for a quick return to ‘business as usual.’ Our team uses flexible approaches to complement the styles and investment timeframes of our clients, and where appropriate, secure lasting change. Doing so adds shareholder value, frees up human and financial capital for reinvestment in core operations, and enables our clients to complete a greater number of transactions in a shorter period of time.

We can help with:

Carve-out and divestment support

Managing the separation to strengthen deal value

Whether divesting part of your business or targeting a disposal, a carve-out process provides the opportunity to challenge and strengthen the carve-out entity's operating model. Our carve-out experience can help you determine an effective way to separate and rapidly realize improved deal value, whether you are a buyer or seller.

Our carve-out approach focuses on what really matters:

• Developing a fit-for-purpose, cost-efficient, stand-alone operating model
• Preparing robust and executable separation plans across all aspects of operations
• Defining flexible transitional arrangements to ensure the business can operate, as needed, from day 1.

Operational due diligence

Strengthening deal value

Our team leverages industry knowledge and unrivalled deal experience to assess potential merger synergies, stand-alone performance improvement opportunities or key operational risks, on both the buy and sell side of M&A transactions. Our team can quickly provide you with invaluable insight and perspective on the operational risks and improvement opportunities to leverage value in both core operations and back-office functions.

We help our clients to:

• Gain an understanding of a target's operations and its risks, including the cost base and capex requirements and how IT is supporting the business plan
• Identify performance gaps and potential for rapid improvement e.g. through cost reduction, operational restructuring and off-shoring
• Gain insight on key deal issues and opportunities — even with limited access to information
• Assess carve-out issues and associated costs

Merger integration

Balancing integration with your core business

Signing a merger or acquisition deal is only the first step of a long journey. The ultimate goal is to strengthen value created by the deal. However, studies show that most mergers and acquisitions fail, destroying value instead of creating it. Almost two-thirds of these failed transactions are due to poor planning and execution of the post-deal integration phase.

Senior management’s close attention during this time is vital. Even the best-planned transactions can fail if you don’t implement a systematic and timely integration strategy—the transition period immediately prior to closing and the first 100 days afterward are crucial.

When to call us

• You have just acquired or will acquire a business and want to know how to proceed
• You would like input on the adequacy of your integration plans from an experienced, independent third-party professional
• Your integration effort requires resources
• Your integration effort has stalled, is incomplete or has failed

To find out more about how our comprehensive range of services can help you reach your transaction goals, please feel free to contact Kishan Dial or a member of our team in your area.