M&A - Integration and Separation Advisory

The integration or separation of two or more companies is not necessarily complex, it is about a thousand of decisions to be taken in parallel. The best deals follow a structured approach with clear objectives, detailed implementation plans, and a focus on value creation. At Deloitte, we provide best in class programme management capabilities with proven strategic, operational, change management, legal, tax and financial expertise to maximise value creation and support clients with their business integration and separation needs.

Your Integration and Separation challenges

Many companies tend to underestimate the effort, workload, challenges and surprises, costs, and resources required for a successful closing (Day 1) and issue free integration or separation. Yet, ignoring all or some of these factors endangers the success of the integration.

Capturing the value of the deal is a balancing act that requires intense focus and close attention to all aspects of the integration as well as managing employees, customers, and investors. This requires someone who is not only a project manager, but who also has an understanding of your business and the M&A environment.

How Deloitte can help

Our team of dedicated Integration and Separation experts offer the knowledge, proven methodology, experience, and execution-oriented skills gained over the course of multiple transactions.

We have a clearly defined approach and methodology to cover your integration/separation from a central planning perspective, as well as from a corporate function perspective, including finance, human resources, information technology, research and development, sales and marketing, supply chain, procurement, etc. We provide tailored planning and execution based on tested experiences, saving you valuable time and mitigating your risks.

Our approach is hands-on and pragmatic, based on many years working alongside our clients to deliver on their integration and separation strategy:

·      Defining the integration / separation strategy and approach

·      Designing the overall programme structure and governance

·      Selecting and/or preparing the Integration Director (e.g. through a tailored 1 day M&A lab)

·      Developing and validating the synergy case and implementing a solution to realise them

·      Creating target state operating models or Blueprint for the end state and analysing organisational design for the new entity management structures

·      Drafting detailed integration plans and supporting the development of solutions and resolution of issues

·      Managing discreet activities required to complete the deal and ensure business continuity as of Day One

·      Managing change: Dealing with workforce implications and programme communications towards both internal and external stakeholders

·      Developing the functional transition services agreement and exit

·      Understanding your end-customer and defining the growth plan

 

Benefits include:

·      Delivering on the real rationale, including financial and shareholder benefits

·      Retaining customers and employees through rigorous execution of customised playbooks

·      Ensuring clarity of scope and target state vision

·      Enhancing discipline and control through content-rich, knowledge-based programme management

·      Mitigating risks and issues, by staying ahead of the issues and deep experience to support swift resolution

·      Reducing disruption by focusing on people and change management

·      Preventing the escalation of costs, caused by faulty or slow solutions

Topics in the spotlight

The state of the deal - M&A Trends

Corporate and private equity executives focused on mergers and acquisitions (M&A) anticipate further acceleration of deal flow in 2019—both in the number of transactions and in their size—which would further extend several years of record M&A activity. In Deloitte’s sixth M&A trends report, we gleaned insight from 1,000 executives at corporations and private equity firms about deal activity in the current year and their expectations for the next 12 months.

 

Discover more: Download the Brochure

 

Future of the deal: Winds of change

The last five years witnessed an unprecedented bull run in global M&A markets and 2018 was the fifth consecutive year deal values crossed the $3 trillion mark. Looking ahead into 2019 and beyond, the winds of change are evident in the rise of political and economic uncertainties.

At the same time the momentum created by the last five years will simply not vanish: corporate cash levels remain at record levels, cross-border deal flows remain unabated with US and Japan leading the way, and private equity sector enjoyed its best ever year since 2007 and remains hungry for deals.

M&A is inherently a long-term decision, so while current conditions could prompt caution, we do not expect dealmakers to become dormant.

Discover more: Download the brochure 

 

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