The document provides an overview of corporate mergers and acquisitions (M&A), including considerations in M&A transactions, the current state of the market, general concepts, and the transaction process timeline. It also discusses accretion/dilution analysis and adjustments that are made to the income statement for stock-for-stock and cash-for-stock acquisitions, such as accounting for new shares issued, debt financing, synergies, and other transaction-related impacts.
Value creation through M&A - A best practice framework for management and boa...Exemplum
This paper provides management teams and boards with a best practice framework to help them pursue, evaluate, and effect M&A and partnership opportunities. It also includes detailed management and board checklists.
M&A’s are among the biggest challenges for companies and their IT organizations to navigate. They often create issues that cannot be dealt with conventional leadership and management techniques.
Value creation through M&A - A best practice framework for management and boa...Exemplum
This paper provides management teams and boards with a best practice framework to help them pursue, evaluate, and effect M&A and partnership opportunities. It also includes detailed management and board checklists.
M&A’s are among the biggest challenges for companies and their IT organizations to navigate. They often create issues that cannot be dealt with conventional leadership and management techniques.
Nakisa Transformation Accelerator for Mergers, Acquisitions & DivestituresNakisa
Accelerate time to realize the value of M&As with Nakisa
A recent Deloitte report found that 84 percent of corporate executives anticipate a sustained, if not accelerated, pace of M&A activity in the next 24 months. However, while change is on the rise, the reality often falls short with 70 percent of change initiatives failing to meet their expectations.
Expectations are high and yet, in an environment where adaptability and agility can mean the difference between success and failure, focusing on speed and accuracy of the change process is vital to business success. The faster organizations can see outcomes of potential scenarios, the sooner they can realize their objectives. It is available at your fingertips using Nakisa’s Accelerator for Mergers, Acquisitions and Divestitures.
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Exit Strategy Planning For Investors PowerPoint Presentation SlidesSlideTeam
The firm has no exit strategy at present. This product outlines the exit strategy for the startup firm to help its owners founders liquidate their stake in the business by stop investing more funds in it and start earning substantial profits if business is successful and limit losses, if business is unsuccessful. The Chief Strategy Officer will present it to top level management in an internal meeting. The current scenario of the firm is depicted through its overview, brief description about key people, milestones achieved, shareholding pattern, and firm financial performance is determined by revenues earned, profit generated, and earnings per share, etc. The firm has been through various stages to raise funds and is moving ahead towards its exit stage. It will assess the current funding pattern to raise capital over years, assessing optimal time for preferring suitable exit option, etc. Investors are searching for various exit options. They can choose from several exit strategies such as Initial public offerings, management buyout and strategic acquisition by third party, etc. This template will help firm to decide which exit option is suitable for it with their process, process timeline and their respective market insights with their success rate. It will also provide comparative analysis for various exit options with average time to exit, etc. The firm valuation is assessed through discounted cash flow model which will determine the present value of the firm depending upon the estimation of how much money it will generate in future. The future financial performance will be determined by the projected balance sheet, income statement, cashflow statement, sales projections, etc. https://bit.ly/2AJHAj1
Presentation slides from seminar looking at how to grow the value of your business, originally presented at Liverpool Crowne Plaza Hotel together with GrowthAccelerator and Natwest Bank
Management Consulting Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey, Deloitte & BCG Consultants, after 2,000+ hours of work. It is considered the world's best & most comprehensive Management Consulting Toolkit. It includes all the Frameworks, Tools & Document Templates required to improve the Management Consulting Capability of your organization & excel as a Management Consultant. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit at www.slidebooks.com
Finance trends Modernizing finance in private companiesDeloitte Canada
Finance trends: Modernizing finance in private companies is based on a survey of Canadian CFOs and finance leaders conducted in the summer of 2016. The report examines the current roles of finance, and the capabilities both CEOs and CFOs expect their finance teams to have within the next few years. The report also offers a framework to help CFOs evaluate their finance teams' current capabilities and identify the core competencies they will need to help their companies successfully manage a disruptive event.
Quality strategic planning and strategy delivery is increasing in importance as a process and set of tools that guide the development of a municipality. In times when resources are tight, effective and efficient resource allocation is gaining even more importance. This publication will therefore suggest a practical four-stage process to strategic planning at the municipal level, including the setting up of effective structures for managing the strategy process (1), preparing a good strategic analysis of the municipality (2), strategy formulation (3) and strategy implementation (4). A key concept throughout this process is partnership: partnerships within the municipality, as well as with others outside the municipal building, with whom these four steps are undertaken together. Partnerships help make the municipal development process more transparent and accountable, thereby increasing the likelihood of the municipal development strategy to deliver the expected results and contribute to the improved quality of life of citizens.
This course is designed to develop your skills as a strategy consultant. It provides a practical toolkit and gives opportunities to practice new skills in an inspiring yet safe environment. It leads to the following professional qualifications: The Certificate in Management Consulting Essentials (CMCE) and Diploma in Management Consultancy (DMC). We are fully approved to deliver these qualifications by the Chartered Management Institute, Institute of Business Consulting and Institute of Value Management.
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and gain competitive advantage via Real Option valuation and application
Follow these straightforward guidelines to avoid common mistakes to acquisition integration.
Authored by TechCXO's Matt Oess and Greg Smith , you'll get great advice on...
- The Four Most Important Areas to be Managed
- The Proper Cadence of Systems Integration
- Critical "Day One" Execution
Nakisa Transformation Accelerator for Mergers, Acquisitions & DivestituresNakisa
Accelerate time to realize the value of M&As with Nakisa
A recent Deloitte report found that 84 percent of corporate executives anticipate a sustained, if not accelerated, pace of M&A activity in the next 24 months. However, while change is on the rise, the reality often falls short with 70 percent of change initiatives failing to meet their expectations.
Expectations are high and yet, in an environment where adaptability and agility can mean the difference between success and failure, focusing on speed and accuracy of the change process is vital to business success. The faster organizations can see outcomes of potential scenarios, the sooner they can realize their objectives. It is available at your fingertips using Nakisa’s Accelerator for Mergers, Acquisitions and Divestitures.
Mergers and Acquisitions Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 2,000 hours of work. It is considered the world's best & most comprehensive Mergers and Acquisitions Toolkit. It includes all the Frameworks, Tools & Templates required to improve the M&A capability of your organization and boost your personal career. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Exit Strategy Planning For Investors PowerPoint Presentation SlidesSlideTeam
The firm has no exit strategy at present. This product outlines the exit strategy for the startup firm to help its owners founders liquidate their stake in the business by stop investing more funds in it and start earning substantial profits if business is successful and limit losses, if business is unsuccessful. The Chief Strategy Officer will present it to top level management in an internal meeting. The current scenario of the firm is depicted through its overview, brief description about key people, milestones achieved, shareholding pattern, and firm financial performance is determined by revenues earned, profit generated, and earnings per share, etc. The firm has been through various stages to raise funds and is moving ahead towards its exit stage. It will assess the current funding pattern to raise capital over years, assessing optimal time for preferring suitable exit option, etc. Investors are searching for various exit options. They can choose from several exit strategies such as Initial public offerings, management buyout and strategic acquisition by third party, etc. This template will help firm to decide which exit option is suitable for it with their process, process timeline and their respective market insights with their success rate. It will also provide comparative analysis for various exit options with average time to exit, etc. The firm valuation is assessed through discounted cash flow model which will determine the present value of the firm depending upon the estimation of how much money it will generate in future. The future financial performance will be determined by the projected balance sheet, income statement, cashflow statement, sales projections, etc. https://bit.ly/2AJHAj1
Presentation slides from seminar looking at how to grow the value of your business, originally presented at Liverpool Crowne Plaza Hotel together with GrowthAccelerator and Natwest Bank
Management Consulting Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey, Deloitte & BCG Consultants, after 2,000+ hours of work. It is considered the world's best & most comprehensive Management Consulting Toolkit. It includes all the Frameworks, Tools & Document Templates required to improve the Management Consulting Capability of your organization & excel as a Management Consultant. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit at www.slidebooks.com
Finance trends Modernizing finance in private companiesDeloitte Canada
Finance trends: Modernizing finance in private companies is based on a survey of Canadian CFOs and finance leaders conducted in the summer of 2016. The report examines the current roles of finance, and the capabilities both CEOs and CFOs expect their finance teams to have within the next few years. The report also offers a framework to help CFOs evaluate their finance teams' current capabilities and identify the core competencies they will need to help their companies successfully manage a disruptive event.
Quality strategic planning and strategy delivery is increasing in importance as a process and set of tools that guide the development of a municipality. In times when resources are tight, effective and efficient resource allocation is gaining even more importance. This publication will therefore suggest a practical four-stage process to strategic planning at the municipal level, including the setting up of effective structures for managing the strategy process (1), preparing a good strategic analysis of the municipality (2), strategy formulation (3) and strategy implementation (4). A key concept throughout this process is partnership: partnerships within the municipality, as well as with others outside the municipal building, with whom these four steps are undertaken together. Partnerships help make the municipal development process more transparent and accountable, thereby increasing the likelihood of the municipal development strategy to deliver the expected results and contribute to the improved quality of life of citizens.
This course is designed to develop your skills as a strategy consultant. It provides a practical toolkit and gives opportunities to practice new skills in an inspiring yet safe environment. It leads to the following professional qualifications: The Certificate in Management Consulting Essentials (CMCE) and Diploma in Management Consultancy (DMC). We are fully approved to deliver these qualifications by the Chartered Management Institute, Institute of Business Consulting and Institute of Value Management.
Michal A. Kaszas ( HardWood Capital & ISTI Valuation and Strategy specialist) course Advanced Corporate Finance & Strategic Investments. Learn how to conduct strategic analysis and gain competitive advantage via Real Option valuation and application
Follow these straightforward guidelines to avoid common mistakes to acquisition integration.
Authored by TechCXO's Matt Oess and Greg Smith , you'll get great advice on...
- The Four Most Important Areas to be Managed
- The Proper Cadence of Systems Integration
- Critical "Day One" Execution
Demonstrating Good Ethics in Business Valuation Modeling Ralph Colucci, CFA
Summary presentation, which provides an overview of navigating thru the sometimes troubled waters of corporate finance and valuation consulting with good ethical behavior in an influential business world.
36. Closing the deal is often only the first step in the battle. To capture all of the projected post-deal synergies, public companies spend significant time executing the integration of the operations. If the integration is not done correctly, the acquisition can very well be dilutive to the company. Oftentimes, it takes two to five years (or longer) for an Acquirer to realize the synergies in combining with a Target. Management, shareholders and board members recognize the difficulties involved in integration. What is acquisition integration? Why is acquisition integration so important? When does the process occur? What are the necessary steps to complete a successful integration? - - The Deal is Closed. What now? Acquisition Integration Topics
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39. Acquisition Integration – When does it Occur? Announcement - - Acquisition Integration Closing Final Negotiations “ Quiet Period” Regulatory Due Diligence Post-Acquisition Execution Right Here and… Right Here Integration Planning
40. Acquisition Integration – How to Get it Right The process used for post-merger integration often differentiates experienced, successful Acquirers from value destroyers. The key is to find the right balance between speed and thoroughness. Although it is important to realize the potential synergies quickly, ideally in the first 12 to 18 months, executives often declare victory too quickly and rush to return to “business as usual,” leaving synergies unexploited. A disciplined and well-structured integration plan is vital to success. Communicate the vision and business logic of the deal – Employees and other pivotal stakeholders, including investors, must understand the strategic rationale, business objectives, and post-merger integration milestones and targets. Senior management should lead the implementation. Separate the post-merger integration from the core business – Post-merger integration needs its own organization, with a dedicated team of executives and faster than usual governance and decision-making processes. Correct allocation of resources is especially important where there are mission-critical functions. Monitor core business performance – Establish early warning systems to alert management to any falloff in revenue or profitability in the core business. - - Acquisition Integration
41. Acquisition Integration – How to Get it Right (Continued) Proactively manage the soft issues – Post-merger integration isn’t just a numbers game. The process involves complex organizational and cultural changes. Identify key staff and design strategies to keep them on board as they are the value of the franchise. Handle new appointments with care. Move before the close of the deal – There are a lot of actions that can be taken in advance (prior to the close), that enable you to realize the benefits of the transaction immediately after it is finalized. Challenge decisions and assess progress after completion – During a post-merger integration, companies often make decisions on pragmatic or political grounds, resulting in inflated costs. Revisit those decisions and question their contribution to the company’s value-creation potential. When a post-merger integration is successful, the payoff can be striking. A rigorous approach may enable an Acquirer to even exceed its synergy demands and earn the shareholder’s respect and confidence in the company. - - Acquisition Integration
42. Case Study - Introduction Consolidated Communications Acquires North Pittsburgh Systems, Inc. for $375.1 Million Announcement Date: July 1 st , 2007 183 days Closing Date: December 31 st , 2007 Acquirer: Consolidated Communications provides communications services to residential and business customers in Illinois and Texas. It offers a range of telecommunications services, including local and long distance service, custom calling features, private line services, dial-up and high-speed Internet access, digital television, carrier access services, network capacity services over its regional fiber optic network, and directory publishing. Target: North Pittsburgh Systems, Inc. is a local network services, including local dial tone service, custom calling features, and local private line services to residential and business customers; and network access services, which comprise access to its switched access facilities for the completion of interstate and intrastate long distance toll calls and extended area service calls, as well as access to private line network facilities for use in transporting voice and data services to interexchange carriers, cellular mobile radio service providers, and other local exchange carriers. - - Acquisition Integration
43. Case Study – Acquisition Rationale - - Acquisition Integration Source: Consolidated Communication 7/2/2007 8-K SEC Filing Pennsylvania market 357 employees 63,000 access lines Superior broadband technologies Video service Local brand name equity Illinois and Texas market 1,100 employees 232,000 access lines 64,000 broadband connections IPTV technology Telemarketing services Business services
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45. Case Study – The Transaction - - Acquisition Integration Advisors Consolidated Communications Legal – Schiff Hardin Financial – Wells Fargo North Pittsburgh Systems, Inc. Legal – Hughes Hubbard & Reed Thomas, Thomas, Armstrong & Niesen Financial – Evercore Partners Source: Capital IQ Transaction Values Total Consideration to Shareholders ($ mm) 375.13 Total Transaction Size ($ mm) 395.38 Implied Equity Value ($ mm) 375.13 Implied Enterprise Value ($ mm) 347.97 Implied Equity Value/LTM Net Income 25.0x Implied Enterprise Value/Revenues 3.5x Implied Equity Value/Book Value 3.8x Implied Enterprise Value/EBITDA 7.6x Exchange Rate 1.000 Offer Per Share ($) 25.00 Consideration to Shareholders ($ mm) 375.13 Total Cash ($ mm) 300.10 Premium (1 week Prior) 21.1% Total Stock ($ mm) 75.03
46. Case Study – The Transaction (Cont.) - - Acquisition Integration 17.6% premium over market trading price on day of Definitive Agreement Not subject to collars $11.25 million break-up fee Source: Capital IQ North Pittsburgh 7/2/2007 8-K SEC Filing The Purchase Other Terms Financing Cash on hand and debt financing from Wachovia Synergies Operating synergies $7 million in 2008, $11 million in 2009 and beyond 6.0% accretive to cash flow after first full year of operations
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49. Case Study – Stock Performance - - Acquisition Integration Consolidated Communications outperformed the S&P 500 by 50% over this time period Relative Stock Performance 1-year after Acquisition to Today (January 1, 2009 -April 23, 2010) SPX closed 34.6% higher on April 23, 2010 compared to January 1, 2009 price CNSL closed 84.6% higher than January 1, 2009 price on April 23, 2010
50. - - Appendix Note: The companies used as targets in these examples are fictitious and presented for illustrative purposes. Any resemblance to actual companies is unintended and purely coincidental.