Corporate and Private Equity buyers and sellers must address integration and separation issues quickly and early
Corporate and Private Equity buyers and sellers must address integration and separation
Corporate and Private Equity buyers and sellers must address integration and separation issues quickly and early on in a transaction in order for them to realize the full value of their investment.
KPMG's research shows that due to increased competitiveness in the M&A market, around two-thirds of acquirers fail to realize synergy targets. Moreover, nearly half of the synergy target, on average, is included in the purchase price. The research also shows that companies with sound M&A strategies which incorporate synergy identification and integration planning do outperform their competitors. Early planning also helps companies to anticipate the separation issues and potential costs before a deal announcement, and prepare for operational separation at deal close.
To help you realize the value of your deal, our post-deal services start well before the transaction is completed. At the inception of the deal we work with you on identification of potential revenue and cost synergies. Pre-deal, in parallel to deal negotiations, we can help you develop the integration approach, and prepare for Day one. We help you to define the organizational, operational, employee, customer and regulatory concerns that must be addressed beforehand. We also advise you on risky areas of the transaction process that could erode the value of the combined business going forward. Around the time of completion we help you launch an integration planning program for the first 100 days of operations of the new entity under consideration of your strategic priorities, projected financial impact of each strategic initiative and time to completion. We can assist you with preparation of an integration blueprint for the new combined entity and identifying of quick wins. Our monitoring and benefit tracking tools help to keep control over post-merger integration processes and to minimize business risks arising from a delayed completion of integration activities.
In a separation environment, we develop detailed plans to help ensure smooth transition at close.