Mergers and Acquisitions Transaction Services

Our sector specific expertise makes us a preferred choice for our clients -

We cover an entire gamut of services under our integrated M&A due diligence offerings

Financial and tax due diligence

• Acquisition due diligence
• Vendor due diligence (VDD)
• Data-room support
• Bid support
• Sale and Purchase Agreement (SPA) advisory
  Advise you on the accounting aspects of the SPA. Work closely with the core Deloitte team and your lawyers, identify commercial issues early so that they can be appropriately reflected in the SPA and converted into real value
• Tax advisory
  Provide commentary on effective tax rates; assessment and validation of losses and other tax attributes; review current compliance status, tax benefits and their availability in future; and commentary on any other outstanding tax liabilities and material issues

Commercial due diligence (CDD)

• Market and competition landscape
• Review existing customers, nature of contracts, revenue model and pricing
• Define key customer segments, analyse penetration, identify typical purchase criteria and strength of relationships with customers; map out the clients supply chain structure and understand the procurement of products/services
• Review growth plan, analyse key assumptions, undertake scenario and sensitivity analysis
• In addition to CDD, we offer
  – Business plan review development
  – Market assessment and competition landscape
  – Growth strategy, expansion and operational strategy

Value creation Services (VCS)

• Pre and post deal support on –
  – HR and IT due diligence and integration
  Organisation and HR diligence to assess organisation structure, capability assessment, compensation structure, cost benchmarking, human resource challenges and potential risks for business sustainability and scale up Technology and IT diligence to assess the current state of digitisation, process automation, technology performance, digital and IT interventions and other areas of improvement.

– Operations due diligence to assess key business processes, benchmarking of operating KPIs, operating risks and areas of improvement based on industry best practices

– Deal Project Management Office

– Cost optimisation, operational scalability and cash rationalisation

– Customised service offerings aligned to client requirements and specifics of the target business

• 100-day planning and execution

Insights

Deloitte Deal Dynamics: Unveiling M&A trends in India’s entrepreneurial landscape

In the Indian start-up ecosystem, more than 110 unicorns spearheaded over 400 acquisitions between 2014 and 2023. Companies must remember that M&A is more than just transactions. It opens new possibilities for Indian start-ups to create value, achieve sustainable growth and dominate market share. However, companies may want to stay aware as they proceed.

According to a report, 64 percent of investors stated domestic IPOs to be their mode of exit in 2024, whereas only 22 percent said they would take the M&A route.

Sustainable synergies: The evolution of Environmental, Social and Governance landscape in Mergers & Acquisitions

The evolving ESG regulatory landscape in India is making strides towards achieving net-zero emissions, propelled by increased investor awareness and corporate sustainability focus. This momentum is redefining the M&A landscape, with ESG principles becoming crucial for both buyers and sellers. Though challenges like information gaps, voluntary disclosures, and greenwashing are pertinent, the integration of ESG into M&A strategies represents a lasting transformation rather than a temporary trend, promising long term value creation, strong investment performance, improved brand reputation, enhanced valuations, and risk mitigation.

Generative AI and changing M&A landscape

GenAI holds transformative potential in reshaping the M&A landscape. By integrating GenAI into the four stages of M&A lifecycle – strategy, execution, integration and transformation, significant cost benefits can be realised by intelligent target screening, automating back-office processes, due diligence efficiency, and shorter deal turnaround time leading to value creation and the successful execution of acquisitions. However, GenAI comes with its own set of challenges including data privacy concerns, regulatory compliance and substantial implementation costs which can impede its widespread adoption.