M&A Operations and Value Creation

As the uptick in M&A activity continues, the focus on operational matters as a source of value in transactions has never been more prevalent. Both Corporate and Private Equity deal professionals are increasingly looking to drive transaction value through improving operational performance and proactively managing operational risk, whilst lenders continue to seek additional insight and comfort on management’s business plans, forecast operating performance and cash flow.

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

The speed of change and growth in prominence of technology is unprecedented. Within a short timescale, we’ve seen an evolution, from technology as an enabler of back-end processes, through to it underpinning most, if not all, of an organisation’s functions, and fully establishing itself as a key disrupter, differentiator, and revenue driver. Within the context of an M&A transaction - for buyers or sellers - this means technology now represents both a massive opportunity, and a risk of equal measure.

Significant changes to the Takeover Code have increased the reporting burden for offerors and offerees in a transaction. These include a ‘Quantified Financial Benefits Statement’ (‘QFBS’) - a quantified statement of synergies expected from a proposed acquisition, made by an offeror; or a statement by an offeree company quantifying any cost saving or other financial measures that it proposes to implement if a contested offer is withdrawn or lapses.