Merger, acquisition and divestiture activity is on the rise as industry consolidation in select sectors continues, new regulations take shape, companies re-balance their portfolios, and others (strategic and financial buyers) look for smart ways to use the cash they have been protecting for the past few years. Of course, there’s a big difference between doing deals, and doing deals that deliver exceptional value. An acquisition or divestiture is likely to have a dramatic and lasting impact on your business – for better or worse – so it’s important to get it right from a strategic and operational perspective.
Deloitte’s Merger & Acquisition (M&A) related services are provided by consulting professionals who have worked on the front lines in some of the world’s most complex deals. With deep capabilities that can support M&A activities from strategy development and due diligence to transaction execution, integration, target screening and divestiture, Deloitte has been directly aligned with the M&A marketplace for over 30 years. Deloitte has provided services to some of the most sophisticated corporate strategic buyers and private equity investors. No matter what obstacles present themselves, Deloitte can help you in your efforts to be ready for Day One and beyond. Learn more about Mergers & Acquisitions.
Some companies view an acquisition as a fast and easy way to grow revenue or market share. Others are looking to stake out the strategic high ground, or to acquire new products, markets, channels or technologies. And some companies are simply trying to keep up with competitors.
But there’s another layer of value to be gained from M&A, and many companies are pursuing it: the opportunity to transform. Many banks, for example, are consolidating in the wake of the financial crisis and dramatic financial reform. Some tech companies are expanding into new service areas and gobbling up emerging technologies. And some healthcare companies – including providers, insurers, and drug makers – are positioning themselves to capitalize on healthcare reform and looking to reduce costs through economies of scale. The list of transformation opportunities goes on and on.
In addition, for many acquisitions there is often a complex, related carve out that must be completed. Contrary to popular belief, carve outs are not the same as integrations in reverse. Although there may be similar characteristics between an integration and carve out (e.g., valuing the business accurately, negotiating the optimal price, doing the deal quickly), there are a number of specific features. For example, instead of integrating two businesses to optimize synergies, a divestiture involves spinning off part of a business while trying to minimize stranded costs and redundant activities that are no longer necessary to support the retained business. Furthermore, carve outs often involve complex Transition Service Agreement development, contract assignment and operations stand-up activities requiring cooperation across multiple parties with diverging agendas.
Deloitte has the knowledge and experience to help with many types of M&A transactions. We have been directly involved with thousands of deals – from tuck-ins and bolt-ons to consolidations, transformations, and carve-outs – for companies in nearly every industry and geography. We don’t just offer general M&A knowledge, we offer direct, hands-on experience with deals just like the one you may be facing.
We also have demonstrated experience across the M&A lifecycle planning and executing post-merger integration and divestiture projects of various shapes and sizes, including some of the largest, most complex transactions ever completed. This experience not only allows our teams to hit the ground running and deliver high impact results quickly, but also enables us to advise you more effectively and provide leading practices and techniques – stacking the deck in your favor. Our acquisition and divestiture related services include:
Our goal is to help you get the optimal possible price and complete the transaction better, faster and cheaper with less risk.