A typical mid-sized transaction process is outlined. Some aren’t as complicated as this.
Strategic Transactions starts by reviewing your goals (value growth, profit, market share etc.) Then through the Discovery Process we look at the competitive environment for your business.
If a transaction with a counter party is proposed, you should initially see a valuation or market appraisal for your business.
Financial modelling is an integral part of structuring the deal- value, timing, post deal structure etc. This is an iterative* process and progressive feedback is obtained throughout from your advisers as well as from the negotiating counter party and their advisors. Strategic Transactions project manages the flow of activity.
The financial models produced to justify the transaction should be robust and designed to accommodate multiple post-transaction scenarios as well as being able to measure return / risk generated sensitivities. An ideal deal structure should also have flexibility built in.
Once the transaction is agreed, it needs to be communicated to stakeholders accurately.
Then if you are an acquirer, the real challenge begins. That is in ensuring that the post merger performance of the combined entities is truly long term value accretive! The financial transaction models should be compared to actual outcomes and steps taken to ensure that the corporate goals are being realised.
* -Iterative. The act of repeating a process with the aim of approaching a desired goal, target or result.