Helping companies achieve above benchmark returns through strategic capital investment choices
Strategic advice to strengthen ambition
M&A can accelerate growth by harnessing new ways of managing capital. While organic growth takes time and often requires development of new capabilities, M&A enables faster realization of growth through access to new markets, sales and distribution channels, new capabilities, or by simplifying and optimizing 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.
KPMG’s Global Strategy Group (GSG) helps create value by challenging conventional thinking, bringing real industry insights and ‘investor-grade’ rigour, and providing on-the-ground support. The GSG's approach focuses on the key deal questions, such as:
- How will the target really enable new, sustainable growth?
- How valuable and overlapping is the customer base? Are sales channels profitable?
- In what direction could this deal take the new organization?
- Are the targets, capabilities and infrastructure well understood?
- Which opex and capex synergies are really achievable and by when?
- How significant are integration challenges/costs likely to be?
GSG provides strategic and financial advice on raising capital, helps with decisions on where to invest, uncovers new opportunities, and provides rigorous M&A support pre, during and post deal:
- Target identification and evaluation
- M&A (buy-side, sell-side) due diligence and synergy cases
- JV and partnership strategy
- Refinancing and restructuring
- Exit strategies, divestments and carve-outs
- IPO support
- Integration/separation planning and execution
The following case examples demonstrate GSG’s deal strategy approach, underpinned by the 9 Levers of Value framework and core principles.
Helping a private equity firm earn market leading returns on an Internet of Things (IoT) asset
A private equity investor was seeking to realize superior returns on the disposal of an Internet of Things aggregator. GSG professionals provided strategic thinking and industry insight to shape the exit plans, articulating the high growth market opportunity across the world, valuing the company’s customer base, platform assets and strengths, and evaluating the economics of its indirect sales channels. By challenging management’s ambition and reinforcing the strength of the organization’s business and financial models, GSG enabled a successful exit at a market-leading valuation.
Realizing acquisition synergies to build a leading customer focused and technology-driven financial institution in sub-Saharan Africa
A financial services provider's ambition was to become a leading customer- focused and technology-driven financial institution in sub-Saharan Africa by 2020, by integrating strategic acquisitions. GSG provided a holistic 9 Levers of Value approach to help ensure the acquisitions delivered the desired value potential.
Unless the context otherwise requires, throughout this website “Global Strategy Group”, “GSG”, “KPMG”, and “KPMG network” (“we”, “our”, and “us”) generally refers to the member firms of the KPMG network of independent firms affiliated with KPMG International, a Swiss entity that services as a coordinating entity for the KPMG network. KPMG International provides no client services.
Ian R. Smith