Merger and Acquisition
Bringing organisations together through mergers and acquisitions, or carving them out through separations and divestitures, are among the most complex business activities an organisation will ever undertake.
Deloitte is the only professional services firm that can advise strategic corporate buyers and private equity investors throughout the entire M&A deal life cycle. From conceiving strategy to selecting the right partner. From conducting thorough due diligence to closing the deal. From beginning to end, we align our services to address your transactional and integration needs, all with the goal of building value for our clients.
Before even considering an M&A deal, your organisation should step back and think strategically: evaluating external markets, competitors, and business units to determine whether M&A plays a role in your business’s growth or in securing strategic capabilities.
Deloitte’s M&A Strategy practice can help you identify corporate and business unit objectives and determine whether those can be achieved through M&A. We analyse market opportunities, weigh different industry evolution scenarios, and identify potential acquisitions. As part of a larger business portfolio review, M&A strategy may also encompass divestiture strategies, whether an outright sale, initial public offering (IPO), or spin-off.
Your M&A deal should leave nothing to chance. It’s critical to know everything about an acquisition target or a potential buyer before closing the deal.
Deloitte’s Transaction Readiness practice performs the preliminary due diligence essential to avoiding problems later on. This includes establishing key criteria for targets and buyers and facilitating selection. It is critical that the selected buyer is well-prepared to assume control of the divested business and integrate operations.
Faced with constrained time frames and exclusivity windows for options, M&A deal teams must act quickly, without sacrificing thoroughness. Deloitte’s Transaction Diligence & Execution practice provides the necessary rigor at the critical time — performing valuations, conducting due diligence, assessing deal benefits, planning for integration, and streamlining deal closing.
We provide comprehensive financial, strategic, operational and transactional due diligence processes leading to solid letters of intent, sale and purchase agreements as well as Transaction Services Agreements. Tax guidance identifies efficiencies and strengthens an organisation’s negotiating position. Due diligence and risk assessment helps satisfy lenders risk concerns in today's expanding deal environment.
While divestiture activities can play an important role in unlocking value, these transactions often strain an organisation’s resources beyond their limits.
Deloitte’s Carve Out & Separation practice focuses on meeting Day 1 requirements, positioning for stability after the separation occurs, and securing the strategic viability of the stand-alone company. In most divestitures, we continue to serve an organisation following the closing date to ensure a full transition of operations and technology assets to the buyer or the stand-alone company. During this period, sellers may provide agreed-upon services under Transition Services Agreements (TSAs), which Deloitte may help structure , and they remove inefficiencies (e.g., stranded costs) from their operations.
Preparations made prior to closing an M&A deal are just the beginning. Execution — fulfilling strategic expectations for the deal — is where shareholder value is ultimately generated.
Deloitte’s Integration Strategy & Execution practice help organisations define the pace and degree of integration that will take place once an acquisition or merger occurs. This includes deal success and measurement criteria, building a communication strategy into the integration plan, integrating and retaining key personnel, building tactical plans for the first 100 days, and transitioning into the post-merger environment. Post-Day 1 is the start of the new organisation and begins the work of implementing the combined organisation structure and work processes.
Powered by Deloitte’s M&A Services capabilities, our M&A Institute thought leadership provides insights you can put to work today to address critical M&A decisions. Access insightful research and perspectives on mergers, acquisitions, and divestitures, across all phases of the transaction lifecycle. Stay tuned as we launch new thought leadership on hot topics in the marketplace.
The technology sector is continually being reshaped through merger and acquisition (M&A) activity. This article will present a brief history of technology sector divestiture activity; assess the spin-off value proposition; analyse the typical drivers of technology spins; present examples of notable spin-offs; and explore how digital disruption is creating opportunities for companies to use both spin-offs and sales to create shareholder value.
Whether you are contemplating your first divestiture, consider yourself a seasoned veteran of carve-outs, or are a functional leader working through complex separation challenges, this article collection was designed with you in mind. It is full of leading divestiture practices and insights. Access this compendium to learn insights on driving value through the divestiture and separation process.
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