M&A Challenge 2023

PwC Philippines welcomes you to the eighth M&A Challenge

We are thrilled to bring you the country’s pioneer M&A-focused business case competition in the Philippines!

Now that the world is starting to recover post-pandemic, investors and consumers are looking towards a more sustainable future. As priorities shift, we find ourselves in a new era of sustainability. Different trends have now emerged in the market that exhibit more sustainability-oriented directions for businesses, just a few of which include companies aiming to reach net zero plastic emissions, well-being programs tackling mental health issues, and diversity standards for company board of directors.

Companies that place sustainability as one of their prime objectives are expected to thrive post-pandemic. Not only does their actions positively impact the environment, but the preferences of today’s consumers and investors are concerned with sustainability. A 2023 PwC study surveying Philippine CEOs provides a high-level view of this. The top three initiatives currently being done by businesses include the reduction of printed documents (70%), implementation of energy saving measures (66%), and water conservation (51%). More can be done in this regard as businesses must continue to revisit their business models to grow and thrive in the present environment.

As ESG initiatives continue to benefit the broader business environment, so do companies now continue to integrate ESG into their overall investment framework. The same is true across the full deal lifecycle.

With this, we welcome undergraduate students to participate in our eighth M&A Challenge, and for the first time ever, we are also opening the competition to graduate students! The M&A Challenge provides a platform for students to exercise and expand their skills in solving real-world business challenges amidst shifting business models across industries.

The eighth M&A Challenge is open to students who are up to compete and learn alongside other students nationwide as they complete a series of assignments designed to test their business skills and knowledge. This year, we will have two categories, the undergraduate category and the graduate category. For undergraduate students, it is a chance to build on an M&A case, examine a hypothetical deal transaction, and provide value-adding insights on how hypothetical clients can integrate sustainability-centered initiatives that will add long-term value to their respective businesses. For graduate students, it is a chance to showcase your business acumen and industry experience, in addition to providing value-adding insights to deliver sustained business outcomes.

As PwC adapts to The New Equation, a new global strategy which advocates a future that is human-led and tech-powered, continuous efforts are done to help clients find means to remain competitive and achieve sustained outcomes. For this year’s M&A Challenge case, PwC Philippines was engaged by a listed firm (the “Client”)* in identifying potential target companies to enhance its operations with more sustainable business practices. The Client is a large corporation with diversified operations in the Philippines. While the Client is interested in investing in companies with sustainable practices, it is also concerned with the possibility of divesting businesses that do not align with their sustainability initiatives.

The competition will have two rounds: the Preliminary round (virtual) and the Final round (face to face).

Each round will require different technical and soft skill sets in coming up with solutions to issues and challenges that may arise during an M&A transaction.

Teams will be provided sufficient time to work on the requirements of the case for each round. In the final round, finalists will have the opportunity to present their case and/or recommendations to a panel of leading professionals.

Winning teams from the undergraduate and graduate categories will each be awarded with their respective cash prizes.

Student participants and faculty members also have the opportunity to attend a series of webinars called “The Dealmaker Seminar Series”, which will focus on public speaking and presentation skills, due diligence, accounting and tax considerations in business combinations, and introduction to valuations. These are designed to help with concepts that can be applied during the course of the competition.

The M&A Challenge will run from September 2023 until January 2024.

The Competition

The competition offers business students from universities and colleges nationwide a unique opportunity to gain hands-on experience on a hypothetical M&A case.

The students will gain a better understanding of the M&A process by providing value-adding insights on transactions that will help enhance the client's business and help them understand the risks and opportunities present in the current business and economic environment, along with integrating sustainability-centered initiatives that will add long-term value to their respective businesses.

Finalists for both undergraduate and graduate categories will be invited to present their final case physically to experienced PwC professionals and other business community leaders. The winning teams will be awarded with cash prizes.

Joining details (for undergraduate student teams)
Joining details (for graduate student teams)
Preliminary Round
Final Round (Undergraduate category)
Final Round (Graduate category)
Cash prizes (Undergraduate category)
Cash prizes (Graduate category)

Joining details (for undergraduate student teams)

Each participant must be enrolled in a undergraduate degree in a university or college in the Philippines.
Team members must all be from the same university.
At least third year in college, from any business-related course.
Each student is only allowed to join one team.
Each team shall have a maximum of four (4) members and a coach.

Joining details (for graduate student teams)

Each participant must be enrolled in a business related Master’s degree in a university, college, or institution in the Philippines (e.g. MBA, MS Finance, MS Accountancy, etc.).
Team members must all be from the same university/institute.
Each student is only allowed to join one team.
Each team shall have a maximum of 4 members. Teams composed of graduate students may opt to have or not have a coach at their own discretion.
Participants, including the coach, must not be employed by any professional services firms with similar services as PwC’s during the time of the competition.

Preliminary Round

Confirmed participants shall be the teams who have signed up and will submit their work online.
PwC will pre-identify the hypothetical client (publicly-listed Philippine company). Teams may select which scenario, either the acquisition or divestment scenario, to use for their case. Teams must then select a potential target to be acquired or a subsidiary/joint venture/associate company to be divested (the “Subject Entity”).
- For the acquisition scenario, the participants shall select a potential publicly-listed target within the Philippines or within the SEA or APAC region to be acquired that will help the client implement its sustainability initiatives.
- For the divestment scenario, the participants shall select a subsidiary/joint venture/associate company to be divested whose business practices are not in line with the client’s sustainability-centered strategies.
Teams must prepare a market and industry analysis that is applicable to the Client and the chosen Subject Entity.
Teams must utilize different frameworks such as the SWOT analysis, Porter’s Five Forces, PESTLE analysis, or other frameworks to analyze both the Client and the Subject Entity.
Teams must prepare a financial ratio analysis of the Client.
Teams must perform a financial ratio analysis of the Subject Entity, with commentary on the key movements and the overall financial condition of the Subject Entity based on these financial ratios.
Teams must perform a Sustainability Analysis as further justification for the client to acquire/divest the Subject Entity. The analysis should show how the acquisition/divestment will impact the Client’s sustainability strategy. The analysis should also identify the following:
- Identify ESG risks that are relevant to both the Client and the Subject Entity.
- ESG value creation and/or ESG risk mitigation opportunities, with clear justifications to support the assessment.

Final Round (Undergraduate category)

Five (5) final round teams of undergraduate teams will be selected from the Preliminary Round, based on prescribed criteria to be provided along with the Preliminary case data pack.
A university or college is only allowed one team in the final round.
Teams must prepare a business case showcasing the following from the Preliminary Round:
- Background of the market and industry of both the Client and the Subject Entity from the Preliminary Round
- Different frameworks such as the SWOT analysis, Porter’s Five Forces, PESTLE analysis, or other frameworks for both the Client and the Subject Entity
- Financial ratio analysis of the Client
- Financial ratio analysis of the Subject Entity
- Sustainability analysis
Teams must prepare a valuation analysis by performing relative valuation (or market approach).
Based on the analyses done in the previous bullet points, teams shall assess the acquisition/ divestment as a whole and provide the Client investment recommendations and advice on the deal structure of the transaction.
The analyses and results of the foregoing bullet points shall be presented in a summary report.

Final Round (Graduate category)

Three (3) final round teams of graduate students will be selected from the Preliminary Round, based on prescribed criteria to be provided along with the Preliminary case data pack;
Teams must prepare a business case showcasing the following from the Preliminary Round:
- Background of the market and industry of the Client and the Subject Entity from the Preliminary Round
- Different frameworks such as the SWOT analysis, Porter’s Five Forces, PESTLE analysis, or other frameworks for both the Client and the Subject Entity
- Financial ratio analysis of the Client
- Financial ratio analysis of the Subject Entity
- Sustainability analysis
Teams must prepare a valuation analysis by performing both income approach (or discounted cash flows approach) and relative valuation (or market approach).
Based on the analyses done in the previous bullet points, teams shall assess the acquisition/ divestment as a whole and provide the Client advice on the following:
- Investment recommendations
- Deal structure of the transaction
- Potential buyers for the divestment scenario
- Post-acquisition integration plans for the acquisition scenario.
The analyses and results of the foregoing bullet points shall be presented in a summary report.

Cash prizes (Undergraduate category)

First place: PHP100,000 plus PHP15,000 to the college/university, and trophy. In addition, PwC Philippines will provide the winning team with internship opportunities with PwC Philippines’ Deals and Corporate Finance Department in 2024.
Second place: PHP50,000 to the team plus PHP10,000 to the college/university, and trophy.
The other three (3) finalists will get PHP10,000 each.

PwC Philippines takes no responsibility for the cash prize once the cash has been deposited.

Cash prizes (Graduate category)

The winning team will receive PHP100,000 and a trophy.
The other two (2) finalists will get PHP15,000 each.

PwC Philippines takes no responsibility for the cash prize once the cash has been deposited.

Register your team

Ready to unlock the transformative value of sustainability-driven M&A?

To register for the undergraduate M&A challenge category, click here.

To register for the graduate M&A challenge category, click here.

Registration period is from 18 September to 6 October 2023. Information provided during registration will be confirmed with the respective universities to determine eligibility to the competition.

The Preliminary Round case as well as other competition details will be provided to registered participants at the end of the registration period.

Terms and conditions

By participating in the competition conducted by PwC Philippines (“the Competition”), you (“the Participant”) agree to the terms and conditions below which are subject to change by PwC Philippines at any time without prior notice.

We will strictly enforce plagiarism rules and standards. All participants are expected to work independently. Using information and ideas available online is allowed, provided that proper citation is made. Any violation of these rules shall result in automatic disqualification.

For the undergraduate category, registration for the Competition is open only to currently enrolled undergraduate students who are at least in the third year of their degree course from universities and colleges in the Philippines. Each team can consist of three (3) or four (4) students from the same university or college.

For the graduate category, registration for the Competition is open only to currently enrolled graduate students in Master’s degrees from universities in the Philippines. Teams can consist of up to four (4) students from the same university. Participants, including the coach, must not be employed by any professional services firms with similar services as PwC’s during the time of the competition.

PwC reserves the right to disqualify teams that are found to be noncompliant with these rules. If deemed appropriate, PwC reserves the right to modify the structure of the Competition or cancel a certain category if the target number of participating teams is not met.

All registrations must be made online in the ‘Register the team’ tab before 6 October 2023, 11:59pm Philippine Standard Time (PST).

Personal information and details of the competitors will not be disclosed to parties outside PwC Philippines.

To qualify for the Preliminary Round, your team must have completed the tasks and have submitted your entries to PwC Philippines by 10 November 2023, 11:59pm Philippine Standard Time (PST) through email at ph_ma_challenge@pwc.com. PwC Philippines will contact only those successful in the Preliminary Round regarding the procedures and other details for the Final Round.

Five (5) and three (3) teams from the Preliminary Round will be selected to advance to the Final Round for the undergraduate and graduate categories, respectively . In the Final Round, your team must complete the tasks and submit them to PwC Philippines before 12 January 2023, 11:59pm Philippine Standard Time (PST) through email to ph_ma_challenge@pwc.com.

The judging panel for the Preliminary Round will comprise of PwC Professionals. For the Final Round, the judging will be composed of Partners from PwC Philippines as well as industry experts and business entrepreneurs. Judging will be made according to team performance and merit. Decisions made by the judging panel will be final and cannot be appealed.

The dates specified in the terms and conditions are subject to change. PwC Philippines reserves the right to change these terms and conditions at any time without prior notice.

The Final Presentation and Awarding Ceremony shall be conducted physically and in compliance with health and safety protocols. Further details on the full program will be announced during the Final Round period.

Winners from the Final Round will be proclaimed on the day of the Final Round itself.

PwC Philippines takes no responsibility for any injury, loss or damage incurred by competitors whilst participating in the Competition, whether it be negligence from PwC Philippines, the participating university, or otherwise. Competitors agree that PwC Philippines will not be liable for any liability, claim, or damage suffered by the competitors as a result of or in connection with their participation in the Competition.