The right outcome starts with rigorous and carefully executed pre-deal activities. From identifying the right deal through to due diligence and more, our integrated team of functional, industry and subject matter experts drives identification and execution of a deal with excellence, tailored to the specific needs of your business – putting a spotlight on benefits, outcomes and synergies.
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How we can help
M&A Strategy and Target Screening
Our M&A strategy experts 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.
A rigorous due diligence is crucial for making an informed investment decision. Through our integrated team of functional and industry experts, we can support you with due diligence across all areas of the business. Types of due diligence we typically support our clients with are:
- Commercial Due Diligence (CDD): Understanding the Target’s position in the business environment and its commercial attractiveness is fundamental to determining whether an acquisition is likely to yield a profitable long-term investment. The aim of a commercial due diligence is to assess the commercial attractiveness of the Target by doing a full review of Targets internal and external business environment. A typical scope of the due diligence includes analysis of market, competitive environment, business model, business plan, value drivers and value chain.
- Operational Due Diligence (ODD): A key element to realize the full potential of the M&A deal is to predict operational gaps & risks and estimate the future operating costs of the Target. The operational due diligence is set out to do just that and help a buyer gain early insights on the operational complexities and opportunities of a deal – increasing their ability to successfully prepare for and deliver measurable results post-close. This typically include assessment of operational stability and risk, cost projections, operating model, assets and potential synergies.
- IT Due Diligence (ITDD): IT is underpinning todays businesses and is on the critical path to a success full deal. The IT due diligence aims to frame out potential sources of operational and financial risk related to Target’s IT environment and their IT function as well as uncovering value potential in Target’s IT environment. In carve-out and integration scenarios the IT due diligence typically also includes identification of separation/integration complexity areas, mitigating actions
- Digital Due Diligence: A digital due diligence is conducted to understand Target’s digital products and footprint as well as digital capabilities from a commercial and business perspective. Focus is on investigating what digital products Target have and if they confirm buyers initial investment hypothesis. Furthermore, it is crucial to understand Target’s ability to maintain and continue to develop the products as well as the feasibility of their future roadmap.
- Technology (asset) Due Diligence: When the Target for a transaction have a proprietary technology (software/hardware) asset it is crucial to thoroughly examine the asset to understand its quality and identify potential limitations that may impact the investment hypothesis. This includes evaluating the solution architecture, technical stack and code to understand the robustness and quality of the asset as well as its maintainability and ability to scale with projected growth. This should also include identification and quantification of any technical debt incurred, potentially requiring investments following the transaction.
- HR Due Diligence: Understanding the HR-related impacts and potential risks from a financial, people/culture, and operational/structural perspective, is vitally important to maximizing transaction value. An HR due diligence aims to frame out and prepare for any human capital related risks and uncover value potential related to HR run rate costs and employee liabilities.
Examples of our work
Commercial Due Diligence – Private Equity and telecom
Deloitte’s commercial due diligence team, constituting commercial and telecom experts provided the client with deep insights on the market, growth potential, competition and feasibility of projected business plan, eventually leading to a successful acquisition.
Operational Due Diligence – Global components manufacturer
Deloitte’s integrated team of functional and industry experts provided the client with an in-depth analysis of the Target’s operations, potential value opportunities and considerations for the potential post-merger integration phase. Deloitte’s work also gave the client valuable insights eventually impacting the SPA.
Technology (asset) Due Diligence – Private Equity and healthcare technology
Deloitte conducted a technical due diligence assessing the robustness, maintainability and scalability of the asset. The team of technology and M&A experts provided the client with crucial considerations for their investment hypothesis and the SPA as well as gave the client recommendations and insights to jumpstart value creation activities.