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M&A

M&A - During which phases are consultants part of?

Anonymous A

Dear community

I would like to know in which phases of an M&A deal consultants are involved in:

  1. M&A Strategy
  2. Target Screening
  3. Due Dilligence
  4. Execution
  5. PMI

And if they are involved in all, I would appreciate 2-3 activities in each step mangement consultants do, as I assume they will not do all the stuff for all phases.

Thx a lot!

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Jacopo
Expert
replied on 03/22/2018
Ex Bain and A.T. Kearney / 200+ real interviews / Landed all Big 3 offers

Hi,

I agree with everything that has been written: consultants mainly intervene on due diligences, PMI and M&A strategy.

From a different point of view, when looking at M&A service offering, consulting firms generally offer the following:

  • Acquirer and Vendor Due Diligence: focus on market, competitors, target company, synergies assessment (for info, VDD are usually longer as more emphasis is given to business model and market analysis)
  • PMI (pre and post merger integration): focusing on merger management, value capture, merger enablement
  • Post-deal diagnosis: can focus on i) assessment of opportunities ii) first XXX days plan iii) business case and implementation roadmap
  • Divestiture management: (e.g. separation strategy, operational planning & realignment,...)

Hope this helps,

Jacopo

Vlad replied on 03/17/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

The most common are:

  1. Due Diligence (Assessing the market, competitors and the company. Doing the valuation)
  2. M&A Strategy (Calculating synergies, setting the objectives for different departments)
  3. PMI (usually on a higher level like implementation strategy and PMO. Long implementation initiatives are usually executed by cheaper consultancies)

They don't perform the deal execution and rarely they do target screening.

Best!

Currently non-active expert
Expert
replied on 03/17/2018

Hey,

Consultants can do projects across all, except for your point 4: we don’t take part in the actual negotiations/the deal itself, that’s only a task for the companies and often to the investment banks.

Best

Bruno

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