Article

Strong M&A transaction management

The vital ingredient for a successful purchase

Jun 28, 2021

Key takeaways

Your M&A transaction advisor should take a flexible, management consulting approach that encompasses wide-ranging business and change-management capabilities.

Ensure your advisor has the experience and methodology to deliver measurable enterprise value.

Choose an advisor with a holistic approach to M&A activity, integrating people, processes and technology to maximize synergies.

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Transaction advisory Management consulting Mergers & acquisition M&A transaction management

The purchase of a business is a highly complex transaction whose ultimate value is dependent upon a broad range of variables. The most effective approach to achieving maximum value from an M&A transaction is to start with a full lifecycle approach to M&A transaction management.

Unless your organization has deep experience with such a transition, choosing the right transaction management partner is critical. You’ll need an experienced and trusted M&A transaction advisor with the breadth of expertise to overcome unexpected roadblocks throughout the transition―one that can look past the financials when defining value.

Successful M&A transaction management takes a holistic approach to M&A activity, integrating people, processes and technology to maximize synergies and squeeze the greatest possible value from a transaction. RSM’s transaction advisory service brings a depth and breadth of experience that is unique in the industry. We guide clients through the entire lifecycle of a transaction, from early-stage evaluation through post-acquisition process optimization, to successfully fulfill our clients’ goals.

Here are the four key features to look for in a strong M&A transaction advisor:

The principle objective of most mergers or acquisitions is to achieve revenue synergies and cost savings associated with greater scale. The key to success is having a comprehensive understanding of the nuances of the organization relative to the industry as well as the areas where you can adjust current operating models to take advantage of market forces, leverage the thought power of your human capital and derive greater value from your technology investments, while reducing the costs involved with customer and order acquisition.

Modeling savings through operationally driven synergies is valuable because it allows buyers to establish the right valuations on target companies. It also helps to define the tasks, objectives and targets of the value opportunities—from revenue to cost of goods sold through operating costs—and appropriately align services and solutions to capital allocations. In addition, it’s essential to look at tax credits and incentives, as well as opportunity zones, two large sectors that are often overlooked in the value calculation.

Your M&A transaction advisor should take a flexible, management consulting approach that encompasses wide-ranging business and change-management capabilities to tie everything back to the investment thesis. For example, they should be looking closely at IT systems, applications, advanced technology and infrastructure; head count and workloads in conjunction with such other aspects as quality, safety and customer satisfaction, as well potential opportunities for automation; and third-party spend, which can provide significant opportunities for value creation when two companies merge.

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