Delivering deal value is far from a mystery, even in today’s dynamic deal environment. The most experienced deal makers say they know what to do. But success is getting harder to come by.
Getting the right balance
Deal success remains all about execution. Our experience of working on deals of all shapes and sizes tells us that there are three key aspects to keeping a balance between the integration and the core business:
- Value: maximise the value through clear objectives and targets that explicitly focus on value delivery.
- Control: objective challenge and a proven ‘fit for purpose’ process to manage risk, priorities and scope.
- People: it is essential to manage people effectively through a time of great uncertainty.
Although every transaction has unique objectives, we make sure you have clarity about what you want to achieve.
Here’s how we can help:
- Focus on detailing the value to be delivered, maintaining strong control over scope and cost, and supporting people through the change. It’s important to us that the plans developed are owned by management and we work collaboratively to achieve this
- We address the immediate concerns of the acquirer over the first 100 days of the acquisition and produce detailed action plans to deliver value from the deal
- We carry out post-deal reviews after 6 to 12 months to assess whether objectives are being met and if not, how to get them back on track
- Assemble a team with three areas of capability – integration specialty, industry insight and experience across the different business functions
- Help you develop the business and synergy cases
- Assess your readiness for integration or the success of past acquisitions
- Verify the due diligence and provide the practical methods and tools
Divestiture and carve out
Whether divesting part of your business or targeting a disposal, a carve out process offers the opportunity to challenge and optimise the carve out entity's operating model. We have experience of divestments ranging from standalone businesses, to the most complex carve outs, across a range of sectors, advising on the sell side and buy side. We understand both vendor and buyer perspectives and their impact on value to maximise your ability to deliver deal value.
Our flexible and rigorous carve out approach focuses on what really matters:
1. Developing a fit for purpose, cost efficient, standalone operating model
2. Preparing robust and executable separation plans across operations and IT that safeguard the core business
3. Defining flexible transitional arrangements to ensure the business can operate from Day 1
If you’re planning to sell or purchase part of a business being carved out, here’s how we can help:
- Divestment support – helping you prepare for sale
- Advice to define the optimal Transitional Service Agreements (TSAs) and Long Term Arrangements (LTAs) required between the carve out entity and Vendor
- Carve out due diligence – including Day 1 readiness and capability building to migrate off transitional support
- Carve out planning and implementation – manage critical Day 1 risks/actions and standalone capabilities post TSA
- Preparation of carve out financials
Operational due diligence
We can help you, our client in buying and selling businesses by combining our full range of specialised industry knowledge with our deal experience. Our team works with corporate and private equity clients 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.
The approach taken by the team is issues-focused and is based on our industry knowledge and experience of supporting clients across all stages of the deal cycle.
Our team can quickly provide you with invaluable insight and perspective on the operational risks and improvements which can be made to reduce cost and leverage value in both core operations and back office functions.
We can help you:
- Identify performance gaps and potential for rapid improvement, e.g. through cost reduction, operational restructuring and off-shoring
- Provide an insight on key deal issues and opportunities - even if limited access/information is available
- Assess carve-out issues and associated costs
- Identify and challenge synergies