When it comes to integrating a business, getting it right in four areas is crucial: vision, control, people and value. Without managing these, almost two-thirds of acquirers fail to realize synergy targets in today’s increasingly competitive M&A market. Nearly half of the synergy target, on average, is included in the purchase price.
KPMG’s member firms are focused on creating real, lasting value. We tackle key issues, eliminate unexpected surprises and identify synergies to help you minimize risk and maximize value. Our global team works closely together to help you focus on key questions at each stage of the process, working with you to overcome even the most challenging aspects of the deal.
- What is the right synergy number? How much do I include in the price?
- Does this deal align to my strategic business objectives?
- Will this deal help me respond to market and competitor dynamics?
- Am I ready for Day 1?
- How do I identify and retain key people?
- What steps do I need to take to protect my business as usual operations during the transition phase?
- How do I make sure I achieve my synergies targets?
Whether it is to strengthen balance sheets by selling non-core businesses, simplify businesses by selling non-core brands, achieve a new strategic direction by spinning off a division or to sell a business unit as mandated by regulators, divestments and carve outs have generated a significant amount of value in the M&A market.
However, the carve-out road is not easy. Separation complexity should not be underestimated as it has a direct impact on deal price. To be successful requires a balance between maximizing value while mitigating risks, and quickly divesting while maintaining control of the process and protecting business as usual operations.
Across KPMG’s network, we help clients throughout the whole process, from defining separation options and understanding the potential impact on value through to developing and delivering successful separation plans.
- What is the optimal separation approach?
- What are the key separation risks and how should these be mitigated?
- How will this business operate at deal close and when fully standalone?
- Which services will need a TSA (Transition Service Agreement) or an LTA (Long Term Agreement) and how should they be implemented?
- How do we ensure a seamless transition that protects operational integrity and minimizes value leakage?