Mergers and Acquisitions

Adding value together

 
The overarching goal of a Merger or Acquisition is to add value. Whether this comes via geographic expansion, share growth, scale capture, cost reduction, or knowledge gain, M&A activities are driven by the belief that two entities can achieve more value when operating together than when operating separately. While a successful merger or acquisition can enable a company to execute key components of its strategy, an unsuccessful merger can and will destroy value.

Omniton works with a variety of clients (from corporations to early-stage) to analyse strategic M&A options, conduct thorough due diligence (to identify potential pitfalls and value creation opportunities), and to operationalise strategy in the eventual combined entity. Throughout the process, we remain focused on how best to create shareholder value, which often dictates that a deal should be avoided in lieu of other strategies.

Following is a more detailed description of how Omniton can assist in a merger or acquisition effort:

Opportunity Evaluation/Target Identification:
A merger or acquisition evaluation often starts as one element of a more global strategic review for a client. As Omniton works to quantify various strategic opportunities, M&A often emerges as a potentially attractive strategy to drive value creation. If this is a viable option, we work to understand the key characteristics required in a target company, to create a funnel to identify and filter these candidates, and then quantitatively evaluate each target potential as a partner.

Due Diligence:
Once a target is established, we conduct hands-on and comprehensive due diligence of the target company. The centrepiece is a detailed financial model which based on the key drivers of the business. In order to understand the industry and company landscape (and populate the valuation model), we dig into the most granular data available to fully understand profit drivers. Where necessary, we go well beyond readily available data and work to understand the target from the field, via interviews with other industry experts, competitive research, market research surveys etc. The result is an objective, quantitative view of the M&A opportunity with the key business issues understood in great detail.

Execution of Actionable Solutions:
A key offshoot of the due diligence process is our ability to recognise and evaluate potential profit levers within the newly integrated organisation. Capturing these upside opportunities, whether they are cost synergies, untapped markets, or customer bonding strategies, can transform a solid investment into a highly profitable one. Omniton often sees an M&A opportunity through past the transaction, teaming with the management team to execute the strategic vision that initially drove the investment opportunity.