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  • Type: White paper
  • Date: 9/15/2011

The value of using an advisor 

value of using an advisor
It might seem paradoxical, but experience shows that the more practiced a business becomes at carrying out successful acquisitions, the more they tend to rely on external advisors to help them manage the process. Studies suggest that deals where there has been a good external advisory team will realize, on average, around 30 percent more value than those that are done entirely in-house.

“Deals done fast may look good financially, but if you’re planning to leave your underlying systems and operational integration until later, you are storing up trouble. The longer you leave it to complete your integration, the harder and more expensive it gets.”

– KPMG US Partner Carl Carande


The key contributions that KPMG advisors can make to the success of a deal are:
Experience of past deals – no two deals are the same, but the same problems and issues do appear regularly. A good advisor will have handled these matters before, and will know what works and what doesn’t.
A detailed plan that will take a deal from initial due diligence right through to completion of integration, with all issues properly resolved.
Specific and up to date knowledge of the relevant regulations, including labor laws, tax matters, and local ownership requirements.
Specific expertise on areas of due diligence that may be unfamiliar to you and your colleagues.
Knowledge on how to shape the new entity, bring together a team specifically to manage the transition from two organizations to one, and drive the process from beginning to end.
Resources to help you get through the more difficult tasks, including presenting revenue synergies in a compelling way to investors.
Perspective to ensure targets are stretching, but achievable, that opportunities are not missed, and that the rationale that made the deal attractive in the first place is delivered.
 

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To learn more, download the full report, contact your local KPMG member firm or email banking@kpmg.com to talk with one of our FS M&A experts.