M&A Consulting
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Every transaction is uniquely similar, what makes your unique?
Many organizations continue to increase their earnings through better managing their costs and balance sheets. But as global competition continues to intensify, investors and boards are demanding more top-line growth as a way to further increase shareholder value. Many are pursuing this growth in revenues and earnings through mergers or acquisitions, which are some of the more challenging endeavors any company can or will undertake.
These transactions are like assembling a complex puzzle with thousands of unique pieces. Companies considering such endeavors will need to consider the following to capture the targeted value:
- carefully articulate a growth strategy that aligns with overall corporate strategy
- identify the right markets and targets
- define and execute a thorough but fast-paced diligence process
- prepare a detailed integration plan by phases; and
- follow up with a well-resourced and communicated integration execution across many complex functions, dispersed technologies and geographies
For these reasons, the need for guidance and lessons learned on managing through these transactions has never been greater.
“Protiviti successfully delivered four integrations simultaneously while standing up our M&A function – truly an amazing customer experience!”
CIO, Head of Integrations
Fortune 500 Tech Company
The Mergers and Acquisitions Life Cycle
Protiviti’s M&A framework provides a starting point for answering the core questions identified in mergers and acquisitions (M&A) deals – from due diligence to the integration of people, processes and technology, supported by key project and change management enablers.
Protiviti offers a unique approach based on decades of hands-on corporate leadership roles in transitions to help guide organizations through the rigorous and often chaotic Transaction lifecycle. Our M&A consulting team assists clients in all aspects of preparing, planning, managing, supporting, and cleaning up all components arising from integration or divestiture activity.
Our Playbook for Mergers, Acquistions, and Divestitures is a crucial resource for any company going through the M&A Process.
Our Service Offerings
Letting the dust settle from completing a transaction can take months, if not years, for our clients. On top of that, transactions can also bring added complexity to organizations and their various business units. However, when working with Protiviti, complexity becomes simplicity.
Readiness
Transactions are often untimely and inherently disruptive to operations. Buy preparing for a transaction, management teams have the ability to self-identify critical “must haves” and items that are less important to business operations. In order to assist our clients with these areas, Protiviti has a proprietary process leverage our “readiness” framework that can be completed in a matter of hours or expended over a multi-day workshop designed to help our clients prepare for their next transaction activity.
Readiness sessions typically include:
- Define transaction guiding principles
- Develop success metrics (i.e., synergies)
- Develop comms and change management plans
- Stand-up Diligence Management Office
- Execute readiness workshops with key stakeholders
- Define 30-, 60-, and 100-day plans
Planning
“Realizing transaction value is only as good as the plan to get there.” Protiviti’s team of seasoned deal professionals assists client with identifying what important to their specific transaction and mapping these activities to a functional integration or separation plan all with fitting into the “big picture” and achieving financial metrics as outlined in the deal model.
Our key focus areas include:
- Define Target Operating Model (TOM)
- Establish transaction governance structure
- Identify core closing activities
- Develop Day 1 execution plan
- Identify critical resource requirements
- Identify and align critical dependencies
- Finalize key milestones
Execution
So now that you’ve closed the deal it’s often up to the transaction management office to successful combine or separate operations and transition to business as usual.
Protiviti supports all management activities after a deal is closed by:
- Assess & align Target Operating Model (TOM)
- Confirm and assess governance structure
- Set-up transaction management office
- Develop detailed post close execution plans
- Deliver human capital transition plan
- Stand-up and staff closing “situation room”
- Implement risk plan
Delivery
When undertaking a transaction, employees are not only burdened with their “day jobs”, but are also expected to support transaction activities until the businesses transition to a combined entity. In addition to supporting at the transaction level, Protiviti’s transaction team can support within workstreams as strategic advisors or as “boots on the ground” to alleviate pressures on existing employees. Our typical focus areas are IT, Human Capital, Supply Chain, Communications, Finance / Accounting (Treasury, FP&A, AP, AR, etc…), as well as legal support relating to contract rationalization.
Our focus areas include:
- Manage transaction work stream(s)
- Operationalize “master plan” from transaction management office
- Develop and execute synergy identification and validation
- Develop, implement, and execute reporting mechanism
- Monitor resource leveling and staff augmentation requirements
Clean up
Once a transaction is completed and transitioning to business as usual, clients are often expected to realize synergies set forth in the deal thesis. These synergies are often combined into two buckets: (1) sales and (2) costs. Our team of professionals is experienced not only in identification of synergies across all workstreams, implementation and monitoring of financial performance metrics, but cleaning up back office functions that arise from combining ERP’s and other various systems into one unified operating system.
Our focus areas include:
- Address performance and demand issues while also filling operational roles
- Stand-up new or relocate existing functions
- Clean-up accounting and risk backlog
- Turn around under-performing functions
- Establish formal account reconciliation program
- Build and operate general accounting shared services
Additionally, our team of individuals can look back on current or prior transaction activities and perform “look back” assessments to identify pain points and better prepare your organization for the next transaction.
The chaos, speed, and pressure that transactions bring can overwhelm organizations that do not have the proper protocols and procedures in place. When attempting to tackle transactions alone and unprepared, organizations realize that their transactions tend to fall short of their overall goal. With the help of our dedicated team of professionals, clients can feel that their business and people are in good hands throughout the entirety of their transaction.
Insights
Priorities and Risks – For Private Equity, Lingering Effects of COVID-19 Create a Mix of Opportunities and Risks (February 2021)
Executing Successful Transactions: Key Considerations for Buyers
Executive Perspectives on Top Risks for 2021 and 2030
10 Keys to Effective Board Oversight of M&A
