Delivering Deal Value
In an intense, competive environment for global operation, M&A transaction is one of the most common strategies for business growth and the key of success. In the event of a successful M&A transaction, it is necessary to perform deliberate planning before entering the deal, have effective communication and execution during the deal, and conduct comprehensive integration after the deal.
The Delivering-Deal-Value Service offered by PwC Taiwan brings together professionals in various fields including Strategy, Finance, Tax, Legislation, Human Resources, and Operation, to assist clients in developing an effective transaction plan.
The services we provide include:
- Operational Due Diligence
- Pre-Deal Restructuring / Carve-out
- Taking Control
- Post Merger Integration
- Operational Due Diligence
- Pre-Deal Restructuring / Carve-out
- Taking Control
- Post Merger Integration
Operational Due Diligence
Our dedicated deal team, along with our value enhancing approach, industry expertise and implementation capability, will help you quickly identify, quantify and capture sustainable value in your deal.
Our Operational Due Diligence approach is the first stage of the value creation process which provides you with insights into improving the performance of the target companies or demonstrates the values of divestitures.
We will provide you with comprehensive reports supporting the value creation opportunities and risk mitigations. In addition, we will assist you in the development and execution of the value realization plan.
The services we provide include:
- Evaluation of Complete Operational Processes from Sales & Marketing, R&D, Procurement, Production & Materials Management, Supply Chain & Logistics, and After Sales Services.
- Review of Operational Aspects of Working Capital.
- Review of Capital Expenditure (Investment Planning, Management Processes, Property, and Plant & Equipment)
- Evaluation of Support Functions (IT, HR, Finance)
- Evaluation of Management Capabilities, Operational Excellence and KPIs.
- Review of Restructuring and Cost Reduction Plans.
- Analysis of Upsides and Vulnerabilities in terms of Expected Synergies.
Pre-Deal Restructuring / Carve-out
When organic growth does not satisfy the needs of your shareholders, or when you would like to dispose non-core businesses or assets, PwC can help you develop a comprehensive, strategic plan for restructuring, starting from setting the goal of the transaction, relationship building between core-business and stakeholders, to analyzing the potential risks of the transaction.
Key issues of pre-deal restructuring:
- How to evaluate targets? Have the one-off costs of restructuring been estimated? How to evaluate the values of the transaction?
- Has the business scope between the target and parent companies been clearly defined?
- Is there a more cost-efficient operating model for the target?
- Has the need for transitional services and other long-term agreements been identified?
- Is there any plan being clearly established to ensure the transaction will proceed smoothly?
Our solutions:
Conduct a comprehensive feasibility assessment of the restructuring plan by taking into various perspectives including finance, assurance, tax, legal, and management, to help the client identify appropriate buyers.
Plan the process for the chosen proposal, develop the appropriate management structure for the current business operating model, as well as optimize the practical value of the transaction.
Taking Control
A quick transformation increases the chance of a successful deal and lowers the potential negative costs. To effectively achieve transaction objectives and take over the control, it is critical to set up deal protection mechanisms and conduct comprehensive planning. These actions do not only protect the rights and interests of both sides of the transaction, but also speed up the process of integration, and bring the operation back on track in the shortest period of time.
The services we provide include:
- Under the condition of perserving the current operation, PwC will assist you in the development of a strategic proposal to speed up the integration by setting major milestones within the schedule, including day-1 plan, first 100-day plan, a half-to-one-year plan, and a 3-year plan.
Post Merger Integration
Value will not be realized naturally after the contract is signed; instead, synergy is achieved by a comprehensive integration plan. A transaction usually brings a significant change to an organization. Thus, a complete integration plan should be well devised before the deal and executed firmly after the deal is made.
Post merger integration has to be considered from various perspectives, including strategy, change management, organization, business, finance and accounting, tax and legislation, information system, and human resources. PwC provides a comprehensive post-deal structure of integration management, which ensures strong execution and brings creative solutions to clients.
