Servicios

Value creation services

Sharp, focused delivery

Our Value creation services are predicated on the rapid identification, planning, and implementation of prioritized performance improvement initiatives that will improve cash and enhance profits.

Our longstanding and deep Private Equity (PE) relationships and strong track record are predicated on deploying proven PE techniques and tools to rapidly identify, quantify and deliver value across the entire value chain. Deployment of our approach means that we are sharply focused at driving results that unlock cash and enhance profits. Value creation services are also tailored to the type of situation at hand, such as acquisitions, divestments, transformations, or turnarounds.

Be your own activist

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This Financier Worldwide article looks at the rising level of activity in carve-outs sold to Private Equity firms and what these firms need to consider when assessing an acquisition.

The Future of the Automotive Value Chain: Supplier Financial Transformation

In times of radical change in the automotive value chain, proactive transformation helps suppliers secure their position in the market while also identifying potential areas for action with a direct impact on profit & loss, the balance sheet and cash flow.

Value Creation scenarios
Click on scenarios below:
M&A event driven
Transformation
Turnaround
Our VALUE CREATION services are utilised in multiple situations, event driven and on-going

VALUE CREATION M&A services

Before and after an M&A event there is one-time opportunity to build an enhanced VALUE CREATION plan that the new owners can use to deliver incremental value


VALUE CREATION proposition

situations

  • Work with the purchaser of a new asset to identify incremental profit improvement and/or synergies with post deal delivery including integration/carve out support
  • Pre-deal assessment with thevendor of an asset to identify incremental benefits, offset dis-synergies and enhance the sale price

differentiation

  • Extensive transaction experience
  • A buyer’s perspective to the sell-side and separation
  • An ability to draw on a wide range of related specialisms, e.g. complex programme/ cultural change/ technology implementation support

deployment

  • Hypothesis led Private Equity lens and insight
  • Enhanced cash management /working capital focus and finance transformation
  • Programme management including carve-out and/or integration support
VALUE CREATION Transformation services

Unleashing existing businesses by framing performance using VALUE CREATION methodologies and mindsets, leading to a step change in profitability


VALUE CREATION proposition

situations

  • For management seeking a new perspective on profit improvement of existing business units
  • Total value chain to focussed activities
  • Need for external “Transformation Director” (TD)

differentiation

  • Strong track record in benefits delivery of large scale and complex transformations
  • Private Equity rigour, challenge and quantitative focus
  • Broad specialisms framed by VALUE CREATION methodologies, pace and prioritisation

deployment

  • Hypothesis led Private Equity lens and insight
  • Zero-based budgeting challenge to revenue and costs (supply chain, sales, marketing, opex)
  • Situation and industry specialists
  • Analytics for data-rich environments and opportunities
  • PMO and robust benefits tracking framework
  • Specific CFO and TD services and support
VALUE CREATION Turnaround services

Applying VALUE CREATION techniques and focus on under-performing companies or divisions radically improves outcomes


VALUE CREATION proposition

situations

  • For management or owners of a distressed business seeking radical changes to performance and crisis management
  • Management with an underperforming division or unit requiring turnaround

differentiation

  • Expertise in crisis scenarios including Interim Management and stakeholder management
  • Depth of business planning, operational restructuring and liquidity management expertise
  • Subsequent support available for strategic restructuring and exit options

deployment

  • Specific Executive support including CFO and CRO services, finance and reporting tools
  • Enhanced cash/ liquidity management, working capital and cost-out focus
  • Growth, optimization, transformation and exit option analysis to assess risk and rewards
  • Asset rationalisation
  • Contingency planning in distress cases, debt advisory

 

VALUE CREATION techniques and tools

The VALUE CREATION methodology deploys techniques to identify, quantify and prove-out the value, ready for implementation


  • Private Equity lens
  • Fact based and hypothesis led analysis
  • Zero-based budgeting
  • Data analytics
  • Pricing Upsides
  • Working capital
  • Interim management
  • Value Creation Office

VALUE CREATION focus

Deloitte’s VALUE CREATION is applied across the value chain


  • Commercial/Strategy
  • Supply chain
  • Strategic sourcing
  • Revenue & Margin
  • SG&A
  • Capex optimisation
  • Performance mgmt
  • Operating models
  • Cash & Working capital

 
Value Creation services versus Value Creation M&A Services

Value Creation is a Full Service Offering across the entire Deal Cycle


Acquisition Pre-Deal Support
  • Acquisition Identification and Sourcing
  • Due Diligence Services
    • Financial Diligence
    • Operational Diligence
    • Commercial Diligence
    • IT Diligence
    • Tax Diligence
  • Merger Integration/ Carve-out Planning
    • Synergy development/review
    • Day One/100-Day Plan Development
    • Carve-Out Planning and Execution
    • Post Merger Integration Execution

 
Performance Improvement
EBITDA/Cash Improvement
  • Revenue (pricing) Management
  • Cost Efficiency/Reduction
    • Direct Costs
    • G&A
    • Human Capital
  • Supply Chain/Procurement
    • Network optimization
    • Warehouse management
    • Outsourcing and Offshoring
    • Leveraged Sourcing
  • Lean Operations and Investment Review
  • Cash and Working Capital Management
  • Finance transformation
  • Integration/synergy realisation

Asset Efficiency
  • Working Capital Management
    • Improving cash management & reporting
    • Re-designing key processes (O2C, P2P, F2F)
    • Renegotiate contract terms
  • Asset Optimization
    • Operating Assets
    • Technology Assets
  • ERP Selection and Project Management
  • Technology Asset Management
  • Real Estate Advisory
  • Business Intelligence/ Management Reporting

Turnaround and Restructuring
  • Cash and Liquidity management
  • Turnaround Planning and management
  • Restructuring Options
  • Financial and Operational Improvement
  • Chief Restructuring Officer Interim management
  • CFO Services Asset Rationalisation


 
Exit Support
  • Exit Planning and Execution
    • Carve-Out/Divestiture Advisory
    • Corporate Finance
    • Exit Tax Advisory
  • Pre-Exit Financial Advisory
    • Capital Structure Redesign
    • Securities Renegotiation and Amendment
    • Debt and Equity Placement
  • Sell Side Due Diligence
    • Vendor Diligence
    • Synergy Assessment
    • Cost Reduction Implementation Planning
  • Exit management, wind down and closure
Case studies

VALUE CREATION M&A case studies
Spirits producer

Large regional player acquired by multinational corporate. Post acquisition VCP delivering planned EBITDA uplift >100%. Focus on commercial, operations, WC and tax

European glass packaging

PE owned €500m+ turnover pan European glass packaging manufacturer:

  • €20m operational savings
  • €19m cash release
Waste Management

PE £1bn+ turnover services business

  • £15m+ of revenue, cost and cash opportunities identified and planned

M&A services

Before and after an M&A event there is one-time opportunity to build an enhanced VALUE CREATION plan that the new owners can use to deliver incremental value.


VALUE CREATION Transformation case studies
Chemical distributor

PE owned €1.1bn turnover business:

  • Identified opportunities to improve working capital to sales % from 16% to 11%
Global alcoholic beverage business

End-to-end improvements adapting customer relationships with a multinational

  • €130m-€200m profit improvement and €250m WC identified
European PE Cable TV operator

Deployed new operating model

  • €160m EBITA improvement through revenue enhancement and cost reduction

Transformation services

Unleashing existing businesses by framing performance using VALUE CREATION methodologies and mindsets, leading to a step change in profitability.


VALUE CREATION Turnaround case studies
Global telecoms operator

Severe competitor pressure which local management could not respond to Successful turnaround of business enhancing valuation by multiples of $100m

Global soft drink bottler

Turnaround plan for $100m turnover business focusing on commercial, operations and working capital

Middle East conglomerate

Appointed CRO to stabilise business and prepare turnaround plan as part of $25bn debt restructuring

Turnaround services

Applying VALUE CREATION techniques and focus on under-performing companies or divisions radically improves outcomes.

There are Value creation services teams across the Americas, EMEA and Asia Pacific:

Americas

Brazil

Canada

Mexico

US

Please contact us for more information.