United Kingdom

Synergies 

KPMG has conducted global research which shows that only 30 percent of deals deliver shareholder value.

 

We work with clients across the transaction lifecycle to help ensure deal objectives and value targets are timely with minimal disruption to business as usual.

 

We provide end to end merger, joint venture, and acquisition support, focused on pre-deal synergy development/evaluation and translation into integration plans.

  

What's on your mind?

 

  • Evaluating the risks and benefits of a potential acquisition and achieving value from the transaction
  • Estimating the potential benefits (both cost and revenue), one-off costs of integration, and likely phasing
  • Challenging operational management to identify and quantify stretching but realistic synergy opportunities 

   

How we can help 

 

  • We help identify and challenge all areas of benefit and one-off costs from a transaction, and help estimate likely timing/ phasing of these
  • We benchmark against comparable transactions
  • We develop a high-level assessment of risks and drive momentum by informing early integration planning requirements and prioritising areas for implementation
  • The above steps help the board of Directors satisfy itself that it has undertaken a robust process to estimate synergies 

 

Bringing you peace of mind

 

Supporting achievement of deal value through:

  • Provision of an objective and robust evaluation of synergies
  • Utilisation of our experience, deal insights and structured approach
  • Provision of a seamless end to end support across the transaction cycle from pre-deal to post deal implementation 

 

Why KPMG? 

 

  • We have a proven track record of helping clients deliver value from their deals
  • Our team of transaction experts understand and have experience dealing with the challenges you face in the deal
  • We have collective experience of over 500 deals, with the sector expertise and global reach to support your M&A activity across the world 

 

Case Study  

 

KPMG were approached by a large consumer goods business to assist them to assess the synergies from a potential merger.

 

We provided a full range of financial and commercial transaction support, and worked with the management team to support them in assessing the potential synergies from the deal.

 

A separate team also undertook a separate ‘clean team’ exercise that helped management to estimate potential procurement synergies without either party releasing commercially sensitive information to the other.

 

We commented on the synergies identified by management in a private report to the board covering:

  • management’s assumptions for revenue and cost synergies and factors which management considered might have a material impact on the achievement of these synergies
  • phasing of potential benefits
  • estimated costs of implementation 
  • significant integration issues and execution risks, including the status of integration planning

 

We also provided the reports required by applicable regulation.

 

 

Related services

 

 

Contact

Roberta Carter

 

Partner 

+44 (0)20 7311 4190 

roberta.carter@kpmg.co.uk