Value creation services

Services

Value creation services

Delivering focused solutions to unlock cash and enhance profits

Our value creation specialists adopt a private equity mindset and draw on deep industry experience to help companies find untapped value and improve performance. We offer services tailored for event-driven and ongoing situations.

Our specialist team deploys proven private equity techniques and tools including advanced data analytics to quickly identify, quantify and deliver optimum returns across the entire value chain.

We tailor our services to suit various situations, including acquisitions, divestments, transformations, and turnarounds. We draw on our expertise in business planning, operational restructuring, and liquidity management to build effective solutions.

Clients benefit from our deep industry expertise, which is underpinned by an extensive network of contacts within private equity funds worldwide. In addition, we draw on Deloitte’s global network of financial professionals, as well as sector and technical specialists, to deliver the expert advice companies require.

View our case studies for examples of successful solutions we have created.

How we can help

We typically work with the management or owners of a distressed business who are responsible for underperforming divisions and business units and are seeking radical changes to improve performance. Our team can assist with strategic restructuring and exit options, along with services such as asset rationalisation, contingency planning and debt advisory.

We can also help companies manage a crisis. We have deep expertise in building solutions for crisis scenarios, including interim management and stakeholder management.

Find out how we can help in these value creation scenarios.

Case studies

M&A
We worked with a leading home care services provider to offer pre-sale EBIDTA improvement diagnostic and execution support that helped deliver $5m of earnings uplift.

Transformation
Our team worked with a listed retailer to provide a strategic review and costed operating model options for a business unit worth more than $300m.

We also worked with a financial services company to perform a strategic review and develop a bankable profit improvement program of prioritised initiatives with a range of associated benefits. As a result, we helped to drive profit uplift by more than 78 per cent EBIT uplift to $15.2m.

Turnaround
Our team worked with a leading food and beverage manufacturer to identify $35m in opportunities across revenue growth, pricing strategy, operations, organisation design and corporate overheads reduction.

We also supported a large franchisor to develop and implement a turnaround plan focusing on commercial, operations and working capital for individual brands.

Value Creation scenarios
Our VALUE CREATION services are utilised in multiple situations, event driven and on-going

VALUE CREATION M&A services

Before and after an M&A event there is one-time opportunity to build an enhanced VALUE CREATION plan that the new owners can use to deliver incremental value


VALUE CREATION proposition

situations

  • Work with the purchaser of a new asset to identify incremental profit improvement and/or synergies with post deal delivery including integration/carve out support
  • Pre-deal assessment with thevendor of an asset to identify incremental benefits, offset dis-synergies and enhance the sale price

differentiation

  • Extensive transaction experience
  • A buyer’s perspective to the sell-side and separation
  • An ability to draw on a wide range of related specialisms, e.g. complex programme/ cultural change/ technology implementation support

deployment

  • Hypothesis led Private Equity lens and insight
  • Enhanced cash management /working capital focus and finance transformation
  • Programme management including carve-out and/or integration support
VALUE CREATION Transformation services

Unleashing existing businesses by framing performance using VALUE CREATION methodologies and mindsets, leading to a step change in profitability


VALUE CREATION proposition

situations

  • For management seeking a new perspective on profit improvement of existing business units
  • Total value chain to focussed activities
  • Need for external “Transformation Director” (TD)

differentiation

  • Strong track record in benefits delivery of large scale and complex transformations
  • Private Equity rigour, challenge and quantitative focus
  • Broad specialisms framed by VALUE CREATION methodologies, pace and prioritisation

deployment

  • Hypothesis led Private Equity lens and insight
  • Zero-based budgeting challenge to revenue and costs (supply chain, sales, marketing, opex)
  • Situation and industry specialists
  • Analytics for data-rich environments and opportunities
  • PMO and robust benefits tracking framework
  • Specific CFO and TD services and support
VALUE CREATION Turnaround services

Applying VALUE CREATION techniques and focus on under-performing companies or divisions radically improves outcomes


VALUE CREATION proposition

situations

  • For management or owners of a distressed business seeking radical changes to performance and crisis management
  • Management with an underperforming division or unit requiring turnaround

differentiation

  • Expertise in crisis scenarios including Interim Management and stakeholder management
  • Depth of business planning, operational restructuring and liquidity management expertise
  • Subsequent support available for strategic restructuring and exit options

deployment

  • Specific Executive support including CFO and CRO services, finance and reporting tools
  • Enhanced cash/ liquidity management, working capital and cost-out focus
  • Growth, optimization, transformation and exit option analysis to assess risk and rewards
  • Asset rationalisation
  • Contingency planning in distress cases, debt advisory

 

VALUE CREATION techniques and tools

The VALUE CREATION methodology deploys techniques to identify, quantify and prove-out the value, ready for implementation


  • Private Equity lens
  • Fact based and hypothesis led analysis
  • Zero-based budgeting
  • Data analytics
  • Pricing Upsides
  • Working capital
  • Interim management
  • Value Creation Office

VALUE CREATION focus

 
Value Creation services versus Value Creation M&A Services

Value Creation is a Full Service Offering across the entire Deal Cycle


Acquisition Pre-Deal Support
  • Acquisition Identification and Sourcing
  • Due Diligence Services
    • Financial Diligence
    • Operational Diligence
    • Commercial Diligence
    • IT Diligence
    • Tax Diligence
  • Merger Integration/ Carve-out Planning
    • Synergy development/review
    • Day One/100-Day Plan Development
    • Carve-Out Planning and Execution
    • Post Merger Integration Execution

 
Performance Improvement
EBITDA/Cash Improvement
  • Revenue (pricing) Management
  • Cost Efficiency/Reduction
    • Direct Costs
    • G&A
    • Human Capital
  • Supply Chain/Procurement
    • Network optimization
    • Warehouse management
    • Outsourcing and Offshoring
    • Leveraged Sourcing
  • Lean Operations and Investment Review
  • Cash and Working Capital Management
  • Finance transformation
  • Integration/synergy realisation

Asset Efficiency
  • Working Capital Management
    • Improving cash management & reporting
    • Re-designing key processes (O2C, P2P, F2F)
    • Renegotiate contract terms
  • Asset Optimization
    • Operating Assets
    • Technology Assets
  • ERP Selection and Project Management
  • Technology Asset Management
  • Real Estate Advisory
  • Business Intelligence/ Management Reporting

Turnaround and Restructuring
  • Cash and Liquidity management
  • Turnaround Planning and management
  • Restructuring Options
  • Financial and Operational Improvement
  • Chief Restructuring Officer Interim management
  • CFO Services Asset Rationalisation


 
Exit Support
  • Exit Planning and Execution
    • Carve-Out/Divestiture Advisory
    • Corporate Finance
    • Exit Tax Advisory
  • Pre-Exit Financial Advisory
    • Capital Structure Redesign
    • Securities Renegotiation and Amendment
    • Debt and Equity Placement
  • Sell Side Due Diligence
    • Vendor Diligence
    • Synergy Assessment
    • Cost Reduction Implementation Planning
  • Exit management, wind down and closure
Case studies

VALUE CREATION M&A case studies
Home care services provider

Pre-sale EBIDTA improvement diagnostic and execution support for $5m of earnings uplift

M&A services

Before and after an M&A event there is one-time opportunity to build an enhanced VALUE CREATION plan that the new owners can use to deliver incremental value.


VALUE CREATION Transformation case studies
Australian listed retailer

Strategic review and costed operating model options for $300m+ business unit.

Financial services company

Perform strategic review and developed a bankable profit improvement program of prioritised initiatives with a range of associated benefits, driving profit uplift by ~78% EBIT uplift to $15.2m in FY19.

Transformation services

Unleashing existing businesses by framing performance using VALUE CREATION methodologies and mindsets, leading to a step change in profitability.


VALUE CREATION Turnaround case studies
Food & beverage manufacturer

Identified $35m in opportunities across revenue growth, pricing strategy, operations, organisation design and corporate overheads reduction

Large Australian franchisor

Developed and implemented turnaround plan focusing on commercial, operations and working capital for individual brands

Turnaround services

Applying VALUE CREATION techniques and focus on under-performing companies or divisions radically improves outcomes.

Contact us

Richard Young

Richard Young

Partner, Financial advisory

Richard is a turnaround and profit improvement specialist and an experienced leader of turnaround and profit improvement diagnostics and execution. He advises and leads large scale improvement program... More

Luci Palaghia

Luci Palaghia

Partner, Financial Advisory

Luci has been practising in the field of corporate recovery and turnaround advisory for over 15 years. She has worked with companies facing operating challenges relating to indebtedness or profitabili... More

Derek Barker

Derek Barker

Partner, M&A

Derek leads Deloitte's M&A Integration and Separation team in Victoria. Derek’s passion is supporting clients to maximise the value they create from M&A. He has advised clients at all stages of the M&... More

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    Financial Advisory

    Deloitte provides a broad range of services around M&A, restructuring, economics and capital optimisation as well as finance transformation, turnaround, business modelling and real estate advisory services.

    Debt Advisory

    We provide independent advice across the spectrum of debt situations to help borrowers achieve optimal financing outcomes. Our team draws on Deloitte’s global network of more than 200 debt advisory specialists to deliver effective solutions

    Restructuring services

    The Restructuring Services team offers lending reviews, formal insolvency, liquidations, receiverships, wind-down and closure support plus debt and capital restructures, and turnaround services.

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