M&A is one of the quickest paths to growth. But it’s not the surest, and too often, stakeholders do not get the enterprise value promised from the deal. Deals are inherently complex and laden with risk, whether they occur domestically or in a foreign market. Valuations are complicated by clarity of cash flows, complex accounting rules and tax legislation — and integrations are difficult to execute. So how can you be confident your deal will deliver value to stakeholders?
Dealmakers should consider value drivers and risks to all aspects of their business when setting their M&A strategy, and when doing their diligence on the deal. Take into consideration market dynamics and do business-wide diligence across costs, revenue, systems, talent and compliance to best position yourself to deliver value from your transaction. Make sure you understand what risks are inherent, what risks are avoidable and where you can negotiate value. You’ll be able to make better decisions around optimal market entry options, be more powerful in your negotiations and anticipate or avoid risks that can happen post-close. The result can be worth it — a seamless execution of your deal, synergies captured during your integration, and value delivered to your stakeholders — and strategic corporate objectives met. PwC knows deals. Let us work with you as you confidently enter the right deals and deliver what you’ve promised.
© 2017 - 2022 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.