The objectives of M&A, and the path to achieving them, differ from one company to another. At ABeam Consulting, professionals in each industry and business field partner with the client to advance M&A suited to the client’s whole business operation and management strategy, from pre-M&A to post-merger integration (PMI).
M&A Advisory Services
Solution
We offer a one-stop service ranging from strategies to realize the full potential of M&A to subsequent integration, all with a view to increasing corporate value.
Characteristics
M&A support from the perspective of overall business optimization
Teaming carried out by professionals in each industry & business field
A one-stop service lineup, from strategy on through to execution
Key services
1. Pre-M&A support
We help prepare for M&A action by first taking a medium-term to long-term view from a whole-company perspective as we narrow and specify the field of target firms, then take a considered approach to making overtures to the candidate firm and formulating an M&A strategy that suits the client.
Step1 M&A strategy formulation
We design a basic approach and strategy through careful consideration of the company’s overall management approach and management strategy, analysis of the client firm, its markets and competitors, examination of its medium-term aims and strategic options, and M&A business fields. We align these efforts with the client’s growth and business strategies, new business development and business restructuring plans.
Services
- Supply chain transformation
- Business environment analysis (external & internal)
- Business portfolio evaluation
- Basic M&A approach, strategy formulation support
- Review of the client’s own M&A strategy
Step2 Search/screening
We define the ideals and requirements for M&A candidate firms based on our strategy, then use external databases and internal information to create a broad-ranging long list.
We narrow the list by gathering information and performing analyses on listed firms to assess their fitness in terms of synergy and strategic merit. We then select and prioritize M&A candidate firms and business fields.
Services
- Long list compilation
- Short list compilation / list-shortening criteria formulation
- Support for review of anticipated synergies
- Pre-BDD
Step3 Approach
In order to arrive at the negotiating table with the M&A candidate, we create M&A synergy by considering the best methods of contacting them, discerning the right person for contact, and clarifying the appealing aspects of the proposal.
After setting up the scheduling, producing reference materials, making arrangements for contact and preparing the approach, contact with the M&A candidate is initiated.
Services
- Analysis of the candidate to be approached (approach strategy formulation)
- Approach materials production (including M&A scenarios)
- Making contact with the candidate firm (named / unnamed)
2. Transaction support (deal process support)
Evaluation of candidate firms/businesses, review of M&A structure, strategic negotiation, support for key decision-making by the client and deal-closing support.
Step1 Initial evaluation
We help the persons selected for contact at the M&A candidate firms/businesses gain an understanding of the purposes and synergies involved, then gather and analyze information about candidate firms/businesses to conduct an initial review of synergies, dis-synergies, valuation, structure, etc. Counterparts for negotiations can then be selected.
Services
- Research & analysis of candidate firms/businesses, and materials for initial approach (including M&A scenarios)
- Initial simulation of synergies
- Pre-Purchase Price Allocation (PPA)
- Initial valuation
- Basic structure design support
- Financial advisory (FA)
- Hands-on support for M&A unit
Step2 Due diligence
We design a due diligence plan in light of the M&A strategy and aims to grasp the true status of the firm/business of interest, which will be reflected in our consideration of valuation, structure, contracts and PMI.
Services
- Business due diligence (BDD) initial synergy simulation
- IT, due diligence initial valuation
- Due diligence coordination
- M&A unit hands-on support, financial modeling
- Valuation
- Financial advisory (FA)
- Hands-on support for M&A unit
Step3 Closing
Amid a highly charged situation of constantly shifting circumstances in which the state of play can reverse at any time, we organize and accommodate the complex stakes involved, resolve issues, and solidify key conditions including the acquisition price to bring negotiations to an agreement.
Services
- Support for negotiations/SPA, conclusion of negotiations, closing
- Financial advisory (FA)
- Hands-on support for M&A unit
- Formulation of an approach to post-merger integration (for details, see “3. PMI Services” below)
3. PMI services
We start PMI early on, considering integration from the transaction stage, including strategy formulation, a breakdown of individual measures to be taken in each of the five domains of PMI, providing operational-level support to ensure that any issues are resolved promptly and the benefits of the M&A can be achieved at the earliest possible moment.
Step1 Formulation of PMI principles
At the deal-process stage, we start considering how the candidate firm/business can achieve performance by realizing synergies.
We formulate an approach to PMI that includes designing a picture of post-merger success that all PMI personnel can share as their common goal, setting progress milestones, and reviewing the state of progress.
Services
- PMI approach formulation support
- Support for building systems to promote progress
Step2 PMI Plan formulation
In formulating a PMI plan, we work with the program management office (PgMO) on program progress and management. We consider each individual integration measure to be taken and how to achieve synergy across all five PMI domains: strategy, organization, people, processes and systems.
Services
- Governance / administrative management design
- PMI plan formulation support
- Support for formulation of a 100-day plan
- PgMO
Step3 Integrated implementation
By creating a detailed design from the implementation stage and building it into operations, we can handle issues that arise in the process of integration. This ensures that the intended synergies can be generated.
We also monitor and follow up on progress with the PMI plan, and help move the effort forward.
Services
- Building implementation systems
- Day-1 support
- Support in formulating value-enhancement measures
- Organizational/operational transformation
- Monitor integration process
- PMO
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