Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

How can I best redesign the M&A framework when the client is the seller ?

Hi, 

In traditional M&A cases (client is the acquirer) I usually split my analysis as below:

Financial

1 Benefits (A)Target Value Company (B) Synergies 

2 Costs (A) Price paid, cost of financing (B) Integration costs  

Non-Financial

1 Cultural and organizational fit

2 Regulatory fit

When the client is the seller, does the analysis determined by the choice of the owners to withdraw? For instance, if the owners leave the company, Should I only focus on the benefits (Value + Synergies) and regulatory fit as the rest is the concern of the acquirer? If the owners stay involved, Should I keep everything as all branches of the framework will be a topic of negotiation between the seller and the acquirer?

Thanks

1
3.3k
10
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Sidi
Coach
edited on Nov 26, 2018
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 400+ candidates secure MBB offers

Hi Anonymous,

as always, the central rule is that you need to understand the OBJECTIVES of the client first! If the client is the seller, he might be heavily interested in the future of the company (in this case you need to include the elements you outlined), or at the other extreme he might be only interested in maximizing the monetary value he can appropriate (in this case these "soft" factors only play a side role in terms of risk factors that could endanger the deal if the buy side is seeing an issue there).

But the central notion is that without clarifying the objective of the client, it is simply impossible to come up with a rigorous structure/decision logic.

Cheers, Sidi

Similar Questions
Consulting
Profitability Case Framework? Capital One Mini Case Interview
on Jul 24, 2024
Global
1
5.9k
153
1 Answer
5.9k Views
Consulting
Market Sizing Urgent Help!!
on Jul 31, 2024
Global
3
700+
18
3 Answers
700+ Views
Consulting
Market Sizing Urgent Help Bis!!!!!
on Jul 31, 2024
Global
4
900+
30
4 Answers
900+ Views
Consulting
Question about
Using the Issue Tree
on Aug 27, 2024
Global
4
1.3k
48
4 Answers
1.3k Views
Consulting
CraftingCases: Hypothesis Testing (Case Interview Fundamentals Course)?
on Sep 19, 2024
Global
4
1.9k
52
4 Answers
1.9k Views
Show more