Maximising value in challenging and time critical situations
Deloitte’s Accelerated M&A (AMA) team combines specialists from both our M&A advisory and Restructuring Services teams to provide bespoke and integrated M&A support across stressed, distressed and insolvent transactions. Transactions sometimes may involve the sale of shares, business and assets or debt, potentially delivered via an insolvency mechanism (e.g. pre-pack).
“Transactions frequently delivered in a ‘9 day to 9 week’ timeline.”
The team focuses on delivering the maximum value for clients in what are inevitably complex, time-pressured, and unpredictable circumstances often caused by:
- Liquidity shortfalls
- Stakeholder unwillingness / inability to provide additional financing
- Deteriorated trading performance
- Complex stakeholder landscapes
- Disaffected management
The Accelerated M&A team implements a tailored strategy to preserve and realise value for stakeholders by bringing an understanding and approach which recognises the importance of time, managing uncertainty and resolving complexity in what is often difficult and uncharted territory for our clients.
Deloitte’s wide network and utilisation of bespoke tactics enables us to:
- Design and execute robust, value maximising M&A processes
- Identify and rapidly engage with relevant purchasers;
- Maximise competitive tension
- Retain optionality throughout the process
Our solution for each specific situation combines situational experience from across M&A advisory and Restructuring Services with the wider advisory and transactional capabilities of Deloitte (including tax, real estate, employee matters and pensions, and market leading sector expertise), enabling us to provide clients with specialised, differentiated and value added approaches and results.
On sell side assignments, our clients are predominantly corporates facing financial, performance and transactional challenges, and their key stakeholders.
Our role will usually involve the rapid disposal of businesses or divisions to tight deadlines - selling a business as a going concern, executed quickly (sometimes in days, typically in weeks, rarely in months) to maximise value for stakeholders at a time of stress/distress before further value erosion takes place.
We have a market leading track record and reputation for successfully completing what are inherently difficult disposals.
On buy side engagements, we provide support to both trade and financial buyers considering acquisitions of businesses that are subject to a degree of stress or other situational challenges where a traditional M&A process and timetable may not be possible.
Non-standard mergers and acquisitions
For companies and their stakeholders facing complex challenges to unlocking value in a less time pressured environment, our specialist team also provides Non-Standard M&A services.
We all hope that our M&A deals are going to work out as we expect – unfortunately, sometimes they just don’t! And that’s when shareholders can quickly start to run out of patience (and funding) and management is under huge pressure. Having gone through this experience, the key lessons learned are about speed and focus. This is what switching from a standard M&A process to a restructuring team headed by Rob Harding at Deloitte delivered for us.
The M&A team did everything possible but unfortunately time and business performance were against a satisfactory outcome. The challenges changed from securing the best price for the current shareholder and the best home for the business, to preserving as many jobs as possible whilst maintaining an operationally viable business. The priority was to identify those parties willing and able to move quickly and to take a pragmatic view of securing a deal.
Rob and his team were able to deliver against these rapidly changing objectives. They quickly identified the handful of parties able to complete in a very short timescale and moved the conversations forward at an accelerated pace. Evenings and weekends, they were always available. The key to success was changing the expectations of all stakeholders to accommodate what needed to be done rather than what everyone would have liked to be done. This process whilst difficult and sometimes painful, worked – and this is what a restructuring deal is all about.
So, our business survived largely intact and is most probably a better business. We now have a supportive new shareholder backing a management team and business plan that is likely to succeed. It may not be what we originally planned, but it is a great deal better than the alternatives!
CEO, Financial Services client
Deloitte's M&A Advisory team supports a range of clients, from large corporates to owner managed businesses, in executing successful M&A transactions. This includes helping clients make acquisitions, disposals and to raise external funding.