Banks face a variety of challenges in the current market environment. The ongoing low-interest phase and intensifying competition are causing earnings and margins to decline. The expense side, in turn, is burdened by new and expanded rules for compliance with regulatory requirements as well as by necessary investments in digitalisation.
As a result, financial companies must sensibly expand their business models or adapt them in a value-enhancing way in order to be able to continue to operate competitively in the future. In addition to pure projects to reduce costs or increase earnings within the business entity, completely new opportunities for action arise in particular through the skilful use of transactions:
- Merger or acquisition: Enhancement of value creation, achievement of volume effects or leveraging of cost synergies through fixed-cost degression and implementation of revenue synergies through a complementary product portfolio
- Separation/carve-out: Type II spin-off of business units that can achieve higher value creation on their own than in a group, or are no longer considered by the business entity as a strategic core business
- Cooperation: Rapid access to new products, customers, markets, resources with limited risk and shared control to secure medium- to long-term competitive advantages
Dr. Jörg Haupt
Partner, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Make our expertise your success
We offer comprehensive integration consulting in the transaction environment – from strategic conception to practical implementation from a single source.
We will advise you in connection with
- a classic post-merger integration after a merger or takeover of a business entity
- the type II spin-off of divisions during carve-outs
- the creation of cooperations, alliances and joint ventures
We take into account the multidimensional aspects of a transaction, namely functional, technical and cultural, and through our large network, we are able to flexibly provide proven experts on short notice and as needed, e.g. for legal and regulatory issues.
In particular, we support our clients in the following aspects of a transaction:
Target vision and conception
Determination of merger, separation or cooperation strategy; development of high-level target vision for business and operating model; detailing of target vision and derivation of synergies, if possible; establishment of quantitative starting point for synergy targets; validation of synergies; estimation of transformation costs, e.g. restructuring costs; location strategy cooperation assessment: strategic alliances vs. joint venture, cooperation arrangement and network development
Day 1 readiness
Ensuring operational management and business and legal control; definition of stabilisation measures; review of licensing elements and, if necessary, clarification of operational issues with the supervisory authority; stocktaking from a contractual perspective and clarification of transitional arrangements and legal successions; setup of a project structure separate from line activities, planning & tracking of the implementation of measures; setup of a 100-day plan.
Transaction roadmap: Planning the implementation / setting up implementation controlling and KPIs of the transaction; coaching during implementation / driving selected topics if necessary; ensuring achievement of synergies / ensuring compliance with project budget; performing risk analysis for all typical transaction/cooperation risks
Definition/application of retention measures; derivation of personnel management action requirements (“personnel synergies”) from the target vision; preparation/implementation of information events for works councils; definition of negotiation strategy/implementation of negotiations on reconciliation of interests/redundancy plan; monitoring of implementation with respect to personnel management and labour law; implementation of personnel management measures; negotiation of works council agreements
Change and culture management
Identification of a change management officer integrated into the transaction project; identification of stakeholders and key resources; design and implementation of communication measures; setup of a communication plan; ongoing close dovetailing with the technical and organisational transaction.
Benefit from our transaction experience
KPMG’s experts support you in all aspects through all phases of a transaction: from strategy development and the successful implementation of the transaction to the subsequent integration. Our specialists, who focus on banks and financial service providers, provide you with comprehensive advice in all areas and from a single source – on strategy, M&A, valuation, financial analysis and corporate planning, due diligence, corporate reorganisation, tax aspects and all people & change and integration issues.
The KPMG formula for success
Our formula for success integrates structured project approaches, proven methods, extensive benchmark knowledge and innovative approaches to defining strategy, scope of services and organisation.
A profound understanding of your business model, market and competitive environment is just as much a matter of course for us as our global project experience from supporting small and large merger and transformation projects as well as our methods and analysis tools that are standardised globally in the KPMG network.
Added value for decision-makers
Transaction-driven transformations are continuously gaining importance in the financial sector and are becoming more and more complex. Even for experienced decision-makers and their organisation, they are a great challenge. Together with you, we carry out the implementation, which is critical for success, and leverage our knowledge to significantly reduce the highly complex nature of the project.
Using tried and tested tools and a process model, we define the necessary steps together, give you structure and security and accompany you both in the daily operational tracking of the implementation and in the strategic view of the critical path.
KPMG addresses the variety of transaction-related challenges and issues in all dimensions (strategy, organisation, processes, IT, HR, regulatory, legal, labour law, etc.) from a single source.
Long-standing mandate relationships in the banking sector as well as in-depth understanding of business models in the FS sector
Relevant transformation expertise
Experienced project teams with relevant know-how and established toolsets ensure a fast project start and minimise start-up losses
Pragmatic approach and achievement of results
Focused approach to manage complexity and minimise project risks
Professional breadth and depth
KPMG with subject-matter expertise (in breadth and depth) as well as the steering and structuring expertise for complex transformation projects
Teamwork & shared responsibility
Willingness to take responsibility for the overall success, guide the project and make the transaction successful in the long run
We want to succeed with you. We are very passionate about our projects.
Have we got you interested? Then feel free to contact us.