Life in the public markets can be tough, sometimes requiring robust tactics to either make or defend a hostile bid.
For both bidders and defenders a hostile bid requires a thorough review of the vulnerabilities of a particular business. The bidder as well as the defender will come under intense scrutiny during the bidding process.
The scrutiny will focus particular attention on the management teams on both sides. They have to ensure that they position themselves well in the eyes of the market during the bid.• Experience of previous hostile bids is invaluable in mounting a robust defence and ensuring that the optimal outcome is achieved for shareholders.
If this is your situation
You are concerned about vulnerability to a hostile bid. There may be a number of reasons for a business to feel that it is open to a hostile takeover attempt. The sector may be experiencing a periodic downturn, there may be a problem with management succession or there may be criticism of performance from the market.
You are looking to acquire a public target in the coming months.
PwC can help you
We can help companies to examine the substance behind their fears by carrying out a "dummy" defence bid that will identify issues that from an external point of view may give rise to a bid.
For companies making hostile public bids, we prepare reviews on the bidder’s own business and analysis of the vulnerability of the target.
For companies defending a hostile public bid, our review helps the company’s management team to position itself well in the eyes of the markets during the bid.
We provide financial due diligence analysis to validate the financial, commercial, operational and strategic assumptions underpinning the deal.