Pragmatic consolidation analysis supported M&A target prioritization

A company had defined an ambitious international growth strategy which leaned heavily on success with the M&A agenda. Pragmatic consolidation analyses were needed to evaluate target companies. M&A activities were kick-started after getting clear priorities from the analysis.

Challenge

The company had defined growth strategy and their M&A agenda played a critical role in fueling the growth. Management decided to launch a project to assess the match of a handful of potential target companies with their own business and strategy.

Brave the future

Project began by analyzing target companies’ strategies, operations and financials. Operational synergies by function were assessed and initial valuations were made in a pragmatic way just to provide sufficient basis for evaluating EPS contribution, changes in the capital structure and other financial impacts of alternative transactions. Finally, strategic fit was considered and investment rationale described for each of the targets.

The impact

The outcome of the work was a firm understanding of the most attractive M&A targets and priorities. The company initiated multiple M&A activities based on the analysis.