The art of using Mergers & Acquisitions and Private Equity for value enhancement
In an increasingly globalised world, M&A is an essential mechanism of shareholder value enhancement. M&A is facilitating access to new markets, capacities and technologies, as well as enabling organisations to focus on core competencies. Well-planned and strategic M&As are transforming a number of emerging markets’ corporations into global powerhouses and enabling leading US and European companies to metamorphose into international majors.
Private equity, with their wide network and vast experience, play a significant role in the internationalisation of companies and is becoming increasingly popular in Asia as it provides shareholders and management with a number of interesting alternatives to enhance shareholder value. The capital facilitates growth of both emerging and mature companies. As a source of capital, it helps to restructure corporate balance sheets and turn around distressed companies.
While M&A offers immense opportunities, the challenges to successful M&A are considerable. A proper strategy and identification of right targets often make the difference between the success and failure of an M&A process. Appropriate value analysis and negotiation of satisfactory terms and conditions are critical to achieving optimal results with M&A.
Meeting Your Needs
Our multi-skilled Corporate Finance practice possesses significant experience in cross-border transactions with US, European and Asian companies, and has deep capital market experience to provide a comprehensive range of financial advisory services. We are able to advise and work with our clients, aided by the Global PwC Corporate Finance network, through all phases of an M&A or PE transaction, including identification of appropriate targets, finance raising, resolving inconsistencies between vendor and acquirer parameters, and making the deal happen.
Selecting the Right Advisor
In the current globalised business environment, M&As are critically important to enhance shareholder value. To achieve this ultimate objective, and ensure that you get maximum value from an M&A deal, it is essential to identify the right target, value appropriately, negotiate optimum terms, address risk factors and finance the transaction optimally. These require careful selection of the M&A advisor. Conclusion of a successful deal requires an advisor with global reach and network, wide-ranging contacts, industry expertise, demonstrated track record, and above all, an ability to make the deal happen.
Our focus is on cross-border transactions. We have lead advised on the following transactions (among others) involving Singapore corporations:
- Acquisition of SembCorp Engineers and Constructors (Singapore) by Punj Lloyd Limited (India)
- Acquisition of PSB Corporation (Singapore) by TUV SUD (Germany)
- Sale of Pentex-Schweizer Circuits Limited (Singapore) to Sanmina SCI (USA)
- Acquisition of Premas International (Singapore) by United Group (Australia)
- Acquisition of Del Monte Pacific Limited (Singapore) by Nutri Asia Pacific Limited (Philippines)
- Three-way transaction involving Amtek Engineering (Singapore), Kris Components (Malaysia) and IGB (Malaysia)
- Joint venture between Schneider Electric SA (France) and Clipsal Industries Holdings(Singapore)
- Sale of stake in Fung Choi Printing and Packaging (China) to F&N (Singapore)
- Sale of Translink (Singapore) to PWC Logistics (Kuwait)
- Re-franchising of KFC, Pizza Hut and Taco Bell operations in Singapore for Tricon Restaurants International (USA)