M&A VALUATION & ADVISORY
Understanding Value in M&A Transactions
M&A valuation and advisory involves assessing the value of a business, ownership interest or transaction in the context of a potential merger, acquisition or other corporate transaction. The scope of the engagement depends on the transaction structure, purpose, relevant date and information available.
VALUE MATTERS THROUGHOUT THE TRANSACTION.
Understanding value before decisions are made.
A STRUCTURED APPROACH TO M&A VALUATION & ADVISORY
M&A transactions require an understanding of both value and the circumstances surrounding the deal.
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Our analysis considers the business and its financial performance, transaction structure, market conditions, strategic considerations and other relevant factors to support informed decision-making.
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Depending on the assignment, M&A valuation and advisory support may be relevant to acquisitions, mergers, divestments, negotiations, transaction structuring and other corporate requirements.
TRANSACTION REQUIREMENTS
When Is M&A Valuation & Advisory Required?
M&A valuation and advisory support may be relevant at different stages of a transaction, from evaluating a potential opportunity to assessing deal terms and transaction outcomes. The appropriate scope depends on the nature and purpose of the assignment.
ACQUISITIONS
Supporting assessment of value and transaction considerations when evaluating the acquisition of a business or ownership interest.
TRANSACTION NEGOTIATIONS
Providing valuation analysis that can support discussions around value, consideration and other transaction terms.
MERGERS & BUSINESS COMBINATIONS
Valuation and advisory support for mergers, combinations and other transactions involving the integration or transfer of businesses.
TRANSACTION STRUCTURING
Supporting analysis of alternative transaction structures and their implications for value and the relevant stakeholders.
DIVESTMENTS & BUSINESS SALES
Supporting valuation and decision-making when assessing the sale or divestment of a business, asset or ownership interest.
CORPORATE & STRATEGIC DECISIONS
Supporting other assignments where an independent assessment of a brand or intangible asset is required.
M&A value is shaped by the business, the transaction and the strategic context.
Relevant financial, market, transaction and corporate considerations are assessed in the context of the purpose and circumstances of the engagement.
Our Approach.
A Structured Approach to M&A Valuation & Advisory
Each transaction has its own objectives, structure and circumstances. Our approach combines financial analysis, transaction context and professional judgement to develop a reasoned basis for decision-making.
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DEFINE
ASSESS
ANALYSE
ADVISE
REPORT
Understand the transaction
Understand the business & deal context
Assess value & transaction considerations
Support informed decisions
Document the analysis
Establish the transaction purpose, scope, relevant date, stakeholders and key requirements.
Review the business, financial performance, transaction structure, strategic considerations and relevant market context.
Analyse relevant financial, market and transaction factors affecting value and the proposed transaction.
Use the analysis to support discussions around value, transaction considerations, structure and other relevant decisions.
Present the relevant assumptions, analysis, conclusions and advisory observations in an appropriate format.
TRANSACTION CONSIDERATIONS
Factors That Influence M&A Value
M&A value is influenced by a combination of business, financial, market and transaction-specific factors. The relevance of each consideration depends on the nature, structure and purpose of the engagement.
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FINANCIAL PERFORMANCE
Historical performance, profitability, cash flows, growth and other financial characteristics of the business.
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MARKET & INDUSTRY CONDITIONS
Industry dynamics, comparable transactions, market conditions and broader economic considerations.
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​STRATEGIC & OPERATIONAL CONSIDERATIONS
Strategic rationale, operating characteristics, synergies and other factors relevant to the transaction.
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FUTURE GROWTH & PROSPECTS
Expected growth, business outlook, operating plans and other factors influencing future economic benefits.
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TRANSACTION STRUCTURE & TERMS
The proposed transaction structure, consideration, ownership interest and other deal-specific terms.
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RISK & UNCERTAINTY
Business, market, financial and transaction-related risks that may affect value and decision-making.
M&A decisions require more than an assessment of value.
Understanding the business, transaction structure, market context and strategic considerations helps stakeholders evaluate opportunities with greater clarity.
ADVISORY DELIVERABLES
What an M&A Valuation & Advisory Report Covers
The scope and presentation of an M&A valuation or advisory report depend on the purpose of the engagement, transaction context, relevant information and requirements of the stakeholders involved.
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TRANSACTION & SCOPE
Defining the engagement
Identification of the transaction, relevant parties, valuation or advisory purpose, relevant date, scope and key requirements.
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VALUATION & TRANSACTION ANALYSIS
Assessing value and deal considerations
Relevant valuation analysis, transaction considerations, assumptions and other factors affecting the assessment.
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BUSINESS & FINANCIAL ANALYSIS
Assessing the business
Analysis of the business, financial performance, operating characteristics, prospects and other relevant value drivers.
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CONCLUSION & ADVISORY OBSERVATIONS
Presenting the outcome
A structured presentation of the relevant analysis, conclusions, assumptions and advisory observations appropriate to the engagement.
Clear analysis to support informed transaction decisions.
The level and nature of reporting depend on the purpose, scope and circumstances of the transaction.