Deals Strategy

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Currently, industries and business models are experiencing a significant transformation. Mergers and acquisitions allow organisations to meet these challenges by complementing their asset portfolio, growing inorganically, and providing entry into new markets and industries. In this context, we help to develop long-term growth strategies, identify potential opportunities, and identify value drivers before, during and after the transaction.

The Deals Strategy offering combines industry-specific strategic insights with financial analysis to advise clients on the best strategy for inorganic growth.

Service offer

Pre-deal

  • Portfolio strategy: a company`s products and services are the most visible elements of its activity towards customers. However, few companies create a portfolio of products and services that truly aligns with their strategy. Thus, we support the identification of core areas and options for non-core areas divestment, as well as the definition of a coherent portfolio of products and services, and the identification of targets that fit with the distinctive competencies.
  • Strategies for inorganic growth: we support the identification and evaluation of new opportunities for inorganic expansion, for example in new industries that enhance the distinctive competences of organisations.
  • Market assessment: we support decision making regarding the entry into new markets, identifying the markets with the greatest potential considering the Client´s capabilities, performing a market attractiveness diagnosis (including the identification of risks and opportunities) and an analysis of the options for entering the market.
  • Preliminary identification of value creation drivers (Value Drivers, including the creation of business cases): Data driven insights are key to assessing opportunities that can create value throughout the M&A strategy. At PwC / Strategy& we holistically analyse all aspects of the business, industry and market to identify future growth after the transaction.

Deal Execution

  • Commercial due diligence: independently, we perform a complete diagnosis of the market, including the characterization and complete identification of risks and opportunities, analysis of competitors and substitute products, analysis of the customer and key purchasing criteria (customers’ voice through a program of interviews and / or surveys). Additionally, we challenge the achievability of the business plan’s projections, including specific adjustments where we believe the risk is high, or where there could be further upsides.
  • Synergies identification and analysis: we help in the identification, quantification, and assessment of synergy opportunities of a potential transaction (potential revenue uplift and cost savings), as well as in its monitoring (synergy tracking).
  • Planning the value creation associated with integration (including business cases’ creation):
    • The most successful dealmakers realise that the M&A landscape is changing. With technology disruption and industry divergence, it’s no longer just the size of the merger or acquisition that defines its success. It’s also about how you deliver maximum value even after the deal has been signed. At PwC we help to ensure no value is left on the table by bringing together our capabilities across the M&A lifecycle.
    • Whatever the asset size, industry, or sector, there is no substitute for evolving a 360-degree view well before the closing the deal, with Day 1—however close or distant—on the horizon in order to put together a winning bid.
    • Value creation plans should include a thorough assessment of whether the deal is the right one to pursue and a clear methodology.
    • Our support may include:
      • Value Creation Plan definition, including implementation roadmap and, if relevant, an exit plan
      • Strategic integration planning, identifying key risks
      • Development of the integration day 1 plan (Taking Control & day 1 Readiness)
  • Market concentration level analysis: Working alongside companies and legal counsels we develop analysis to explain how competition works in different markets e how the transaction impacts the concentration level. Our practice helps clients establish their case with the competition authorities in a clear, constructive, evidence-rich and decisive way.

Post-Deal

  • M&A integration: A thorough understanding of integration strategy and tactical execution is crucial to achieving the deal’s true potential. That’s why we don’t just connect the right people, insights, processes, and digital solutions. Instead, we work hand in hand with the Client’s teams to increase their operations knowledge of target companies. Together, we’ll avoid risk and identify opportunity from due diligence to post-close value capture.
    • Our support includes
      • The implementation of the IMO (Integration Management Office) and monitoring of the integration;
      • The development of the integration day 100 plan;
      • The strategic review and development of the consolidated business plan;
      • The monitoring of the Value Creation Plan and synergies.

Contact us

António Rodrigues

António Rodrigues

Strategy & Corporate Finance Partner, PwC Portugal

Cláudia Rocha

Cláudia Rocha

Strategy Advisory Partner, PwC Portugal

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