United Kingdom

Deal Services: Value from M&A, integration and separation 

As companies exit the financial crisis, there are opportunities to rethink business models. That might mean merging with or acquiring other companies, or hiving off non-core divisions.

 

But the road is strewn with failed ventures - companies that thought they had found the right match but struggled to integrate it within existing operations. At best they end up with an uneasy 'them and us' co-existence.

 

Working closely with colleagues in Transactions and Restructuring we help with enterprise-wide integration and provide deep functional support to Finance, HR, Operations and IT directors in separating or integrating their functions.

What's on your mind?

 

For companies of every size, growth and restructuring present multiple challenges.

 

  • For most companies, growth means merger or acquisition. Yet, 60 percent of all M&As fail to create promised value
  • Take-over by private equity houses often means rapid turnaround - buy, improve, sell on. With different business drivers, private equity ownership can create tensions between parties
  • Speed is essential to diagnose issues and implement change, to reduce costs and to get the business, in its new guise, running smoothly again. Integration can throw up unexpected hurdles.

 

Bringing you Peace of Mind

 

At KPMG, our professionals have assisted many companies, across all sectors, to help conquer the hurdles and manage merger, acquisition and disposals.

 

We use our expertise to create a one-team ethos right across your enterprise - across systems, functions and people. We unite the finance, HR, operations and IT functions of both companies to operate efficiently as one. And, if divesting a business, we help to plug the gaps so business as usual is swiftly resumed.

 

During this difficult time, we help to:

 

  • Identify, realise and maximise the inherent value in a business
  • Turn business case projections into reality
  • Manage and diffuse any major situations within 100 days of deal confirmation
  • Rapidly diagnose the success of each phase of the post-merger integration and make specific recommendations for improving the business
  • Gain functional control to maintain business as usual and equip it for growth
  • Deliver as much benefit as early as possible in the process to get the business into a steady and less risky state
  • Move the business to a stable footing within one to two years of the deal.

 

What's in it for you?

 

To get the best out of merger, acquisition or disposal, you need a well-integrated approach that allows you to get on with running your day-to-day business while retaining customer focus and commercial momentum.

 

Managed properly, merger and acquisition can deliver significant business benefits:

 

  • Cost reductions and synergies from integration
  • Operational efficiencies from, say, transforming management reporting or sourcing strategies for the combined organisation
  • New and more structured approaches to processes such as sourcing and procurement to deliver continued savings and efficiencies
  • Earlier effective control and risk identification across the enlarged organisation.

 

Why KPMG?

 

In short, KPMG provides exactly the right degree of support that companies need when pursuing growth or divestment strategies.

 

Specifically, we are:

 

  • Big enough to bring together the right deep technical skills to tackle every issue that you are likely to encounter - whether tax, corporate finance, HR, or IT-related or operational or restructuring issues
  • Focused on implementing real change and delivering real benefit - not just planning for it
  • Independent - there are no conflicts of interest nor tie-ins to technology providers
  • Global - no matter where in the world you acquire a business, KPMG has the local people and knowledge to help.