|
About Z/Yen
History
Clients
People
Testimonials
Z/EALOUS
FAQ
Services
Strategy
Intelligence
Systems
SpecialiZm
Change management
Outsourcing
Sectors
Financial services
Technology
Not-for-Profit
Commercial
Public sector
Activities
GFCI
The London Accord
Events
On-line surveys
c
Products
Compliance workstation
Benchmarking
Investment games
PPRISM
PropheZy
VizZy
Knowledge
Books
Articles
Research &
Presentations
Press
Now & Z/Yen
Media coverage
Press releases
Z/Yen imagery
Fun
Photo gallery
Caption competition
Humour
ExtZy
Links
Reading list
Risk/Reward surfing
© The Z/Yen Group of Companies 2008
| |
Numerous academic and accountancy studies indicate that two-thirds to
three-quarters of all mergers and acquisitions destroy shareholder value - so
why pursue them? Often overlooked is that the returns from a successful merger
or acquisition can be phenomenal. Our experience, and other anecdotal studies,
show that the key problems which lead to failed acquisitions include poor target
selection, poor integration planning, lack of post-acquisition re-structuring
and key staff loss in the target. These are manageable problems, but most senior
executives seem to revel in 'striking a good deal' without managing the pre-deal
or post-deal activity essential to making it work out. Z/Yen helps clients
minimise the risks and enhance the rewards from merger and acquisition
activities.
Z/Yen works with organisations through the various phases of a merger or
acquisition: ¨ strategic phase: where are we now? where are we going? how are
we going to get there? why do we seek a merger or acquisition? how will we
manage the acquisition process? ¨ targeting phase: what markets are of
interest? what are our selection criteria? how do we find these organisations?
how do we best approach them? ¨ pre-deal evaluation: market due diligence;
technology due diligence, management due diligence, working with financial due
diligence providers, preparing integration plans; ¨ negotiation: working
alongside the management team and other advisors to help achieve a deal which
realises the importance of increasing sustainable value to all relevant parties;
¨ post-acquisition/merger implementation: realising the value of the
acquisition/merger by developing synergies in sales, marketing, operations,
intellectual property, research, distribution and other operational areas.
Each assignment is unique, but to provide a flavour some examples of Z/Yen's
work include:
-
working with a large outsourcing company, we helped refine their
acquisition strategy, leading to a focus on contract management suppliers.
We then helped them to identify potential partners which resulted in an
approach to a £22 million company. Ultimately, following a successful
acquisition, they were able to onward-sell the acquisition in 18 months for
a several-fold increase;
-
for a large facilities management company, we helped analyse competitors
with an eye to acquisitions. This study identified a dearth of acquisition
targets and a focus on organic growth which led to them selling out to one
of the analysed competitors;
-
for an industrial distribution company with an acquisition which was going
awry, we worked with the management team to identify and solve the problems
brought up by the takeover. Our analysis identified a range of problems,
including fraud, which we helped our client solve. Due to our work, the
re-structured company went on to become the cornerstone of the group;
-
for a software company seeking to expand through acquisition, we worked
not only on potential targets, but also on selling the acquisition strategy
to their key financial backers. The end strategy led to a categorisation of
potential acquisitions, identification of potential targets, technology due
diligence by Z/Yen and the successful negotiation and integration of a
services company which bolstered their overseas operations.
Divestment or disposal can be equally important. Z/Yen has helped companies
to find potential buyers of products, sub-units and other portions of companies,
as well as to seek new homes for entire companies where the shareholders wish to
realise all or part of their investment. In all cases, Z/Yen's risk/reward
methodology forms an excellent base from which to analyse the opportunities and
risks in acquisition or sale. |
