Advisory: Transaction Services

Acquirers can reap significant financial and strategic benefits through an acquisition. However, there are risks that need to be systematically identified and properly managed. Potential deal breakers may be overlooked and negotiation points, compromised.

Due diligence helps identify deal breakers, uncover ‘black holes’, analyse financial and operational health, set negotiation parameters, challenge valuation assumptions, and assess risks. Effective due diligence could uncover potential upsides and hidden value e.g. operational improvements, cost savings, revenue maximisation, turnaround/restructuring/synergistic opportunities, tax optimisation and better asset utilisation.

Do you:
  • Understand your target’s business?
  • Have adequate understanding of the financial information used in your valuation of the target?
  • Know how the target has truly performed in the past?
  • Know what is not being reported in the target’s balance sheet?
  • Know what are the balance sheet financial and tax exposures?
  • How to address and follow up on the risks/deal issues identified?
  • Need to plan ahead or set a roadmap for post-deal purposes?
Understanding the different concerns and various strategic, financial and tax drivers behind each transaction is pivotal.

PwC

How we can help?

It figures: Backed by a team of multi-disciplinary professionals from Tax M&A, Corporate Finance and Performance Improvement, we are in a position to assemble teams/expertise that is unique to each transaction. Our Transaction Services practice provides services throughout the deal continuum: from deal strategy, deal execution, negotiation support to post-deal integration with hundreds of due diligence exercises for transactions of various deal sizes, complexity and industry coverage behind us. In the past year, we worked on over 50 M&A transactions with an aggregate transaction value of about RM110 billion (US$35 billion).

Crossing boundaries: We have supported many leading Malaysian companies on their overseas transactions across ASEAN, Australia, China, Europe, North America and South Asia.

Find out how our Transactions professionals can help you:
  • Analyse and validate key deal issues such as:
    Value drivers and operating cash flows
    Net debt position/working capital
    Quality of earnings and assets
    Liabilities, contingencies and commitments
    Direct and indirect tax contingencies
    Related party transactions/stand-alone costs
  • Provide inputs to support your bid and enhance your negotiation position
  • Identify risks and propose price adjustment mechanisms, legal agreements and tax structuring.