M&A accelerates growth. While organic growth takes time and often requires development of new capabilities, M&A enables faster growth through access to new markets, sales and distribution channels, new capabilities, or by simplifying and optimising infrastructure, operations and costs. Refining corporate portfolios through disposals also creates value to re-orient and re-invest.
Successful execution of M&A, however, is elusive – many mergers and acquisitions fail. This reflects the range of uncertainties going into an M&A process:
KPMG’s Global Strategy Group (GSG) provides strategic support with decisions on where to invest, uncovers new opportunities, and provides rigorous M&A support pre, during and post deal:
The following case examples demonstrate our deal strategy approach and how it’s applicable on the island of Ireland.
A dairy co-operative sought to merge with a peer – however the product and customer focus of each was materially different. Our CDD specialists used Management Information, discreet industry interviews with competition and retail channels, market analysis and proprietary benchmarking data to analyse the Target, its synergy and integration considerations. By challenging Target management’s existing strategy and using data triangulation to bring increased transparency on product by product profit contribution, our client was better positioned to proceed with the merger and a post-deal plan. Our analysis also assisted the review by the competition authority, approving creation of the new €1bn revenue entity.
A conglomerate sought to divest an international, non-core business unit. With a range of Private Equity (PE) and corporate interest, our vendor CDD shed new light on a data-poor sector. By building credible market size estimates and evidencing the underlying drivers of continued growth, we could demonstrate the reasonableness of Target management’s projections. With a mindset beyond the immediate transaction, we also covered carve-out and integration considerations. Our work contributed to a successful €100m exit.
Deal strategy and commercial due diligence requires informed decision making. For experienced guidance for your company, please contact our team below. We'd be delighted to hear from you.