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At a time of major industry convergence, digital disruption and dramatically shifting business models, deal value creation has never been more important. But as we know, creating value in mergers and acquisitions (M&A) is also more challenging than ever.
Seize the opportunity to pivot and transform
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Business is no longer as usual.
Our world has rapidly changed. We need a new solution, a new perspective and a new way for tomorrow’s future.
As business leaders, we strive to build a sustainable future, and create more value for our stakeholders and investors.
Your future starts with your transformation today.
Reassess your strategic positioning and business optimisation, and redefine your market and operating model for financial resilience.
Reimagine your business through Value Creation
Through industry depth and commercial breadth, we will work with you to identify key levers of growth in your organisation. By combining expertise in Strategy, Operations and Finance across the entire business value chain, we will help you create value for your organisation through strategic, business, operational and financial transformation.
Value bridge: A value bridge to help you identify and evaluate the key levers of growth and business optimisation, both organic and inorganic
Anchoring the baseline, identifying historic value drivers, and establishing value creation plan.
Diligence includes:
- Commercial
- Cyber
- Financial
- Human resources
- Information technology
- Operations
- Regulatory
- Tax
Determining which capabilities are needed to capture the greatest value and how businesses should be repositioned.
Examples:
- Assess M&A: disposals, targets in new markets, and skill or technology gaps
- Reallocation of investments to create competitive advantage
- Capitalize on future value drivers for the business, its markets, and adjacencies
- Identify market threats, risks and opportunities, as well as opportunities for cost base realignment
Leveraging existing capabilities and identifying new opportunities for business improvement.
Examples:
- Optimize product, channel and customer strategy as well as internal structure
- Highlight headwinds early to mitigate impact on deal value (e.g. contracting terms)
- Review and assess the operating model fitness for growth
Allocating capital to effectively run existing businesses and expand portfolio.
Examples:
- Optimize net working capital to release cash and reduce debt
- Eliminate unnecessary tax leakages and establish a tax-efficient supply chain
- Optimizing debt and capital structure
Anchoring the baseline, identifying historic value drivers, and establishing value creation plan.
Diligence includes:
- Commercial
- Cyber
- Financial
- Human resources
- Information technology
- Operations
- Regulatory
- Tax
Determining which capabilities are needed to capture the greatest value and how businesses should be repositioned.
Examples:
- Assess M&A: disposals, targets in new markets, and skill or technology gaps
- Reallocation of investments to create competitive advantage
- Capitalize on future value drivers for the business, its markets, and adjacencies
- Identify market threats, risks and opportunities, as well as opportunities for cost base realignment
Leveraging existing capabilities and identifying new opportunities for business improvement.
Examples:
- Optimize product, channel and customer strategy as well as internal structure
- Highlight headwinds early to mitigate impact on deal value (e.g. contracting terms)
- Review and assess the operating model fitness for growth
Allocating capital to effectively run existing businesses and expand portfolio.
Examples:
- Optimize net working capital to release cash and reduce debt
- Eliminate unnecessary tax leakages and establish a tax-efficient supply chain
- Optimizing debt and capital structure
Build a sustainable value creation ecosystem
Protecting and creating value, requires business executives to consider a broader value ecosystem which focuses on business resilience and impact on society.
Read about A CEO guide to today’s value creation ecosystem.
Invest in the right opportunities and drive long term value creation
In a rapidly changing business environment, identifying strategic investment opportunities and unlocking the full potential of a deal is on top of every corporate acquirer, investor and private equity firm’s list. Having a commercially robust and strategic view of your deal will help you make the right investment decisions.
Consider these questions to assess if a deal is the right fit for you:
What is the market outlook and opportunities the business can capture, to achieve profitable and scalable growth?
How achievable is the target’s business plan? What are the upsides, risks and value creation opportunities?
Do you have an outside-in market perspective on how your deal can create greater value on exit?
We help companies distill opportunities, assess challenges and mitigate the risks of investing in new markets, and develop holistic strategies for their long term growth and success. Evaluation of investment opportunities will be predicated on strategic industry and market insights, and further supported by rigorous analysis and validation on the ground.
How we can help you:
Market entry assessment - Evaluate opportunities and assess key commercial risks in new markets and industries, prior to undertaking investments.
Commercial due diligence - Assess the target’s market and commercial environment, evaluate the target’s competitive position, future business plan, strategy and financial projections.
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Business plan and growth strategy - Develop practical and implementable strategies for sustainable growth, and create more value in your business and for your shareholders.
Applying a value lens to help improve business decisions
With markets flushed with liquidity, we are seeing record transaction prices for deals. It is easy to get carried away by emotion and deal fatigue and, as a result, overpay for a deal. This is why it is important to ask the following questions before committing to a deal:
What is the value of the target?
What are the key value drivers? And how sensitive are these drivers to market conditions?
What are the pertinent environmental, social and governance (ESG) considerations affecting deal value?
What is the incremental value from envisaged synergies?
What is the envisaged post-acquisition financial performance and position of the enlarged group?
Will the transaction affect the ability to pay dividends?
Our dedicated team of valuation specialists has advised on deals of various sizes and complexities.This means we can provide you with robust value assessments, and help you make objective and informed decisions that create value beyond the deal.
How we can help you:
Business and equity valuation
Deal financial modelling
ESG impact valuation/measurement
Financial reporting valuation
Derivatives/ financial instrument valuation
Expert evidence on dispute valuation and damage quantification
Don't just hope for synergies. Plan for it.
As companies are not created to be carved out or integrated, many are not prepared for the speed and intensity of the deal process. Beyond the excitement of chasing and closing the deal, its success depends on astute planning and timely execution to generate expected returns and synergies.
Consider these questions in planning and executing a deal:
Is traditional 100-day planning enough to deliver value or is an accelerated and prioritised plan required?
Do your Day One priorities overlook any critical areas of value?
How do you ensure that all synergies are identified and realised?
How do you balance the focus needed for day-to-day business while ensuring that the deal runs smoothly?
We can help you understand the main business drivers and identify key areas of opportunity to deliver deal value from transactions quickly and efficiently.
How we can help you:
Integration (M&A and internal reorganisation) - Achieve integration success with a robust integration strategy and clearly defined target operating model (TOM), Day 1 and Day 100 plans to deliver business synergies, and strategies to support your people through the change.
Divestiture and carve out - Maximise the return from your divestment with a fit-for-purpose, cost efficient, standalone operating model, executable separation plans to safeguard the core business and flexible transitional arrangements to ensure the business can operate on Day 1 without disruption.
Operational due diligence - See the bigger picture with issue-focused assessments to identify performance gaps and key operational risks. Provide key insights on associated capital expenditure (CapEx) and synergies to both the buy and sell-side of M&A transactions.
Our services
Deals Strategy
Valuations
Delivering Deal Value
Insights and publications
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Our other services in Deals
Mergers & Acquisitions
Economics, Policy and Infrastructure Capital
Business Restructuring Services
Contact us
Deals Partner Deals Strategy & Operations, and Healthcare Leader, PwC Malaysia
Tel: +60 (3) 2173 0551
