Acquisitions take place for a variety of strategic reasons including the widening of operational scale or capability, leveraging increased market strength, or seeking to improve efficiency. Conversely, companies wishing to focus on their core business often seek to dispose of non-core activities. Handled well this can bring benefits to all parties including the staff, customers, and suppliers of the transferring company. Handled badly a considerable amount of management time and money can be wasted on aborted transactions or the outcome results in the destruction, rather than the growth, of shareholder value.
We can play a valuable role in complementing your financial team. Our knowledge of the logistics industry, and extensive corporate experience, provides organisations with the means to achieve successful acquisition or disposal with minimal risk.
|Strategic Rational||The most important question to be answered: acquisition or disposal. Which is the best method of achieving the strategic objective? In the case of acquisition, could the same outcome be achieved by organic growth, partnering or subcontracting?|
|Target Selection||Acquisition: what should you be looking to acquire? Disposal: who is likely to purchase the business being disposed of? Understanding the industry and key players is of extreme importance. Considerations include financial resources, market positioning and strategic objectives, operational synergies and commercial and cultural fit.|
|Synergy Benefits||An evaluation of synergy benefits is usually a key factor in any acquisition consideration. Understanding the limits and opportunities of potential synergies helps avoid overpaying or selling a business too cheaply, we are able to combine operational modelling and analysis with financial evaluation.|
|Operational Due Diligence||Whilst everyone understands the importance of financial due diligence, operational due diligence is equally important. Reviewing and understanding the target operation avoids unexpected surprises following the transfer of ownership. Ensuring contracts are in place, operations are legally compliant, the business is operationally robust, and the financial results are an accurate reflection, are all of vital importance.|
|Business Integration||Customers and staff generally allow time to evaluate the implications of a transfer of ownership. It is essential that careful consideration is given to the action to be implemented immediately following the transfer – whether it is simply communication, or the necessity to carry out a full operational integration.|
Merger and acquisition work is a time consuming process that utilises scarce management resources. We can provide you with skilled individuals to facilitate successful transactions, and support post acquisition requirements.
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