Merger, acquisition, divestiture and spin-off activities remain solid business strategies and can offer significant possibilities for value capture when managed well. The problem, however, is that few organizations actually get it right. Why? In our experience, it is because most participants misinterpret what determines deal success. It’s not just getting to the altar with the one you wanted, ‘ or closing the deal sooner than expected. Rather, it’s realizing before you even start that an M&A deal is not effectively “done” until the value of the transaction has been delivered.
This is where the senior finance leader comes in. As the role of finance has changed and grown in recent years, we have seen the CFO’s role expand beyond the traditional expectations of operations oversight and accounting and reporting stewardship. Today, we believe CFOs and other senior finance executives wear four important hats: catalyst, strategist, operator and steward. Each of those four roles can have an important bearing on the M&A lifecycle — strategy, target screening, due diligence, transaction execution and integration. These are the phases of the process from which the value can eventually flow. As with any process, M&A results usually depend on the right person motivating focus, speed, structure, and the commitment of the people involved. Value envisioned at the beginning of the process and value captured at the end are obvious areas for finance involvement, and, more than ever, the finance leader is usually in a position to drive the actions in between.
How we can help
Every deal is different, so it’s difficult to predict in advance what gaps you’ll need to fill on your way to smooth integration. An effective practice is to work with an adviser who brings many different strengths. That’s where we excel. Our firm is widely recognized for our ability to deliver the full range of capabilities needed to help companies in their efforts to meet the challenges of integration, primarily because of our access to resources with experience, knowledge and skills in such areas as Finance Integration Strategy, Synergy Estimation and Tracking, Tax Optimization, Employee Experience, Technology Integration and Risk Management. All at the scale required by the unique circumstances of each merger. Our teams can make all the difference when it comes to helping you in your efforts to achieve value on schedule.
In addition, our comprehensive methodology is designed to help companies put finance integration initiatives on the fast track.
We have identified a standard sequence of activities and milestones that must be reached in each merger integration and have developed specific tools to help companies in their efforts to achieve them. Results databases, accelerators, sample deliverables, checklists – there’s no need to reinvent the wheel when you’re working with a team who’s been there and helped companies get it done.
Our key services support the following activities:
Deloitte’s finance integration services are designed to help companies in their efforts to:
Effective planning and execution of divestitures can help organizations in their efforts to achieve: