The art of using M&A for value enhancement
Your Challenges
In an increasingly globalised world, M&As are essential mechanisms 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 corporations into global or regional powerhouses and enabling unprecedented growth beyond geographical market limitations.
At the same time, M&As are not without risks. Corporations need to secure the right deal at the right time and price, and integrate the acquisition to realise their strategic objectives. Just as importantly, corporations need to evaluate investment opportunities carefully, carry out due diligence thoroughly and know when to walk away. With so many moving parts to get right, it is no surprise that many acquisitions fall short of what acquirers looked for.
In recent years, private equity (PE) has emerged as an important source of capital. The proliferation of private equities in Asia is increasing competition for investments and pushing up valuation. It is now even more critical for private equities to identify the right deals, understand the target’s potential and maximise the value in deal structuring. Post-deal value creation and the right exit strategy are also crucial to achieving the desired returns.
