Integrating companies through mergers & acquisitions or splitting off through separation or divestment is one of the most complex business activities an organization can experience. Deloitte is a professional services firm that advises companies – both strategic parties (for example large listed Dutch companies) and private equity parties (investment companies) – on the entire M&A deal life cycle. From devising a strategy to selecting the right (buyers). From a thorough due diligence investigation to the actual closing of the deal. Whether it's a transaction, integration or separation, the goal is to create value for the customer. From start to finish, various teams work on the assignment.
Corporate Finance assists mergers and acquisitions in both purchase and sale, from idea to actual deal. An M&A consultant is the 'spider in the web' who advises on all aspects of acquisitions and coordinates processes. They also advise on financing issues at companies, institutions and (large) projects in the broadest sense. Your advice includes, for example, obtaining debt in acquisitions, large investments and (re)structuring advice in the financing of companies.
Both listed companies, private equity investors and (semi)government institutions have valuation issues. Valuations helps them with this. The valuations give customers insight into certain investment decisions, for example in the context of a purchase or sale of a company or division, or in the case of a financial or tax restructuring. Other situations where value analyses take place include shareholder and commercial disputes and financial reporting issues.
During an M&A process, a buyer or seller wants a quick and in-depth financial insight into the company being sold or purchased. Transaction Services (TS) assists the customer through financial due diligence, in which in-depth analyses are made of the historical financial performance and position of the company as well as of the future expectations (projections). Through these financial analyses, the underlying profitability of the company is identified and financial risks and opportunities that a buyer/seller can use in his valuation and negotiation with the counterparty are identified. TS often advises international customers; these can be both strategic parties (e.g. large listed Dutch companies) and private equity parties (investment companies) as well as investment banks.
The M&A Operations team advises (international) companies and private equity clients on strategic, operational, financial, technological, contractual and organizational issues before and during a transaction. Thanks to its integrated approach and large network, Deloitte is both nationally and internationally market leader in this field.
An integration or separation is a complex, far-reaching and extensive transition period with short lead times. Substantive knowledge of the process is essential, so that it can be quickly switched between different disciplines. The M&A Operations team analyses how relevant business units can be split off and continue independently and provides strategic advice on this. In addition, the team provides insight into the value drivers of integration or separation of business units with an Upside analysis of Operational Due Diligence (ODD).
The Deal Financials team focuses on supporting clients in the preparations for large complex projects and transactions, such as strategic reorientations, the divestment of a business, an IPO or claim issue. From Deal Financials, we support and advise clients by compiling carve out financials, conducting in-depth financial analyses of the company's historical financial performance and position and future expectations (projections) and preparing and preparing necessary reports. Often the projects are carried out in multidisciplinary teams consisting of big data specialists, tax specialists, actuaries and operational and strategy consultants.
In the case of a company in financial difficulty, a quick and in-depth understanding of the company is required, whereby independent advice to the various stakeholders of the companies (banks, shareholders and management) must lead to a turn-around plan supported by these stakeholders.
In order to analyse the seriousness of the situation in the client, a short-term cash flow projection is started in the first phase. In parallel with this process, a so-called Independent business review is carried out in which an independent analysis is made of the business plan aimed at the three sub-areas that form the basis of each restructuring: the financial situation, the strategy and operations. After the situation has been identified through this review, efforts are made to achieve a future-proof restructuring of the company with all stakeholders, resulting in changes in financing, strategy and organisation. The team acts for all major Dutch banks, international banking syndicates and also for management and shareholders of companies in difficulty.