With disruption and change in traditional sources of value, CEOs are recognising why transformative changes matter. They must be made quickly, and they must be executed strategically. Many also understand that the type of change they require to compete in today's rapidly evolving landscape can't be achieved through organic growth strategies alone.
Thus, executives need to look outside the organisation for new sources of inspiration to achieve transformation. In fact, in a global survey of financial services CEOs by KPMG International, 46 percent said they now see inorganic growth strategies as the fastest way to transform their business and operating model.
However, despite the appetite for mergers and acquisitions (M&A) and transformation, many are struggling to convert the desire for transformative deals into tangible results. Frustration levels are rising as post-deal transformation remains a challenge.
We believe that businesses can do more to ensure their deals enable the desired transformation. They can also shape deal execution to find synergy and maximise value creation.
How we can help you achieve desired transformation
We can help you create value by challenging conventional thinking, bringing real industry insights and ‘investor-grade’ rigour, along with on-ground support. Our approach is underpinned by our 9 Levers of Value framework.
Many deals are focused on achieving scale. In those situations, 'value' is measurable from a short-term perspective in terms of synergies achieved and market share gains. But while making deals for strategic transformation purposes, 'value' is typically perceived for the long term; it is much more difficult to define and measure.
Our approach focuses on key deal questions such as:
- How will the target enable new, sustainable growth?
- How valuable and overlapping is the customer base? Are sales channels profitable?
- In what direction could this deal take you?
- Are the targets, capabilities and infrastructure well understood?
- Which OPEX and CAPEX synergies are achievable and by when?
- How significant are integration challenges/costs likely to be?