Deal Transition & Integration

Realising value from the commercial components of deals.

The challenges of delivering value from deals

Nearly all studies have shown that only 3 in 10 big deals create meaningful value.  Most mergers are based on integrating companies to achieve multiple benefits including cost savings and profitable revenue growth.  However, making changes to the commercial organisations and customer-facing teams carries inherent risks from both internal and external factors.

 

In many pre-deal due diligence efforts, only a subset of the commercial issues may be adequately addressed while other important issues are overlooked. The result is that critical investment risks and upside opportunities are often missed and valuation decisions are made with suboptimal information.

 

Post-deal, reacting to the potential risks, many acquirers proceed too cautiously.   This results in potentially reduced or unrealised benefits. Acquirers who confidently manage the risks of integrating commercial organisations have an advantage in creating value.

 

Typical client challenges we address

‘What is the likely future performance of the company?  How wrong could we be?'

‘How do we ensure the consolidation creates value?’

‘How can we operate efficiently from day one?’

‘Are the commercial synergies identified ‘real’ and how should we achieve them?'

‘How do we get commitment deep within the commercial organisation?’

 

How we can help you?

We help clients understand the key commercial deal drivers, both before and after the transaction. By identifying and managing opportunities and risks associated with the deal transition and integration, we enable clients to concentrate on running their core business.

 

Pre-deal work includes reviewing the market, the competition and commercial operational processes to identify revenue growth and cost-reduction opportunities.

 

Post-deal work involves helping the buyer take control including addressing any day-one urgent actions and establishing a long term commercial integration plan.  Our specific areas of experience include:

 

  • Structured problem solving to get the facts
  • Commercial due diligence on M&A opportunities
  • M&A commercial integration playbook
  • 100 day planning
  • Developing key performance indicators/management reporting
  • Constructing communication plans
  • Implementing program management
  • Addressing change management issues
     
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