Integration & Separation Advisory

Integrations

Although the signing of the deal often is the most memorable moment for those involved in an M&A transaction, the post-merger integration (PMI) is a critical aspect. Considering that more than 50% of mergers and acquisitions fail or underperform (Source: Harvard Business Review), a structured PMI approach is a sound investment. Our team usually fills an important gap when it comes to helping clients deliver deal value.

Our support typically includes but is not limited to: defining the integration strategy and approach, setting up and mobilizing the integration programme, developing and validating synergy cases, developing an Integration playbook as well as target state operating models and ensuring an issue free Day 1.

Separations

Companies often undertake divestitures to generate capital for future growth opportunities or simply to restructure by shedding non-core business units. Divestitures aren’t just mergers in reverse – they are complex, counter-intuitive initiatives that require organisations to often undo years of integration and efficiency maximization. These transactions require specific capabilities that may not be readily available in-house. Yet, without the required skills and knowledge, the divesting entity may suffer under the required efforts and the parent may sacrifice valuable gains or in fact incur deep losses, such as from badly constructed Transition Service Agreements (TSAs), stranded costs or ineffective solutions.

Our support typically includes but is not limited to: assessing separation complexity and pre-work needed, defining scope and separation perimeter, setting up and mobilizing the separation programme, preparing a separation handbook as well as detailed separation plans and ensure an issue free Day 1.

Synergy assessment

Achieving synergies is often seen as the fundamental rationale for M&A activities. However, there are no guarantees that the identified synergies are realized in the end, and many transactions fail to deliver the desired value. We help our clients assess, develop and track synergies with detailed input on cost, revenue and financial synergies and the phasing of these. Our expertise enables us to assist with synergy assessments or reviews as well as team up with a client in the design and implementation of synergy plans.

Bolt-on acquisitions

In recent years, there has been a growing trend for companies to buy-and-bolt on acquisition targets to fast-track their growth strategies. Even though bolt-on acquisitions generally involve a lower degree of integration, a well planned and executed on-boarding is crucial for driving long term value. Our approach is to create a custom-fit approach for your upcoming bolt-on acquisition, by developing a standardized and readily available Integration Playbook. With the help of our proven, but “light-touch” methodology to navigate and manage the integration, our clients are able to work through key decisions and actions to quickly bring a target company on board.

Operational due diligence (ODD)

Our corporate and private equity clients progressively are looking to increase transaction value through improving operational performance and proactively managing operational risks.

In acquisitions undertaken by corporate clients, value is typically realised in the form of synergies, and in divestment processes from capturing and communicating an effective value enhancement proposition for the entity being divested.

For private equity investors, operational efficiencies and cost reduction continue to be a focus area, both during the acquisition due diligence and also post completion.

Our ODD approach achieves in-depth operational insights into the company to be acquired or sold while also highlighting risks and key value drivers.

Typical support includes but is not limited to:

• Developing:

- insights into the target company’s cost base and operational capability

- plans for first 100 days to leverage change momentum and maximize operational benefits

• Reviewing and evaluating:
  

- operational risks within the business

- forecast cost reduction plans, incl. synergy reviews

• Identifying opportunities for further cost reduction
  
• Assisting in the development of performance improvement