Management faces difficult decisions every day, especially in the world of acquisitions. Overpaying and failing to realize the value of target companies is frustrating and damaging to the business and to its shareholders. Following the best in class approach to deal modeling can help buyers avoid the numerous pitfalls in acquisitions. There are two components: the model itself and the process. Both are critical to successful negotiations and execution of an acquisition.
Our approach provides a comprehensive perspective on a deal model when evaluating a target. We take a step back from the entire value proposition and analyze the target’s standalone value. Understanding how the market perceives the target compared to management’s view is a crucial step to avoid overbidding.
By having the right model and process in place, the deal model becomes more than just a yes/no tool for acquisitions and enables you to:
Use this process to make key decisions with confidence and minimize commercial and technical risks.
Principal, Deals, PwC US
Director, Deals, PwC US