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Driving value through post-deal delivery

It’s not said often enough, but deals can be exhausting, draining, and difficult. The sheer volume of work needed to get the average deal over the line – and then to make it work – is astounding. So it’s hardly surprising that dealmakers can be distracted from critical areas that drive value creation. This is where Execution Managed Services (EMS) could be used to support and improve non-core activities, helping businesses focus on the right value creation priorities.

Take the days following the signing of a deal, for example. This is when the real work in terms of separation, integration and value creation is needed – but it’s often when the collective foot is taken off the gas because people are preoccupied with the mechanics of taking control of the business. For example, in the case of a carve-out, replacement capabilities need to be up and running as soon as the deal is complete. Transitional service arrangements (TSAs) are routinely used by buyers to access these essential capabilities and services provided by the seller during the separation phase. An EMS solution offers a ready-made potential alternative that can be brought online at speed to reduce the reliance on TSAs from the outset, or as a route to a more rapid and smoother exit from these arrangements. 

This might sound like outsourcing, but how it works and what it offers is very different. EMS offers the same confidence you might expect in ‘software as a service’, providing access to better technology and solutions,  more skills, and far greater flexibility than businesses could achieve on their own. Shorter set-up time and effort is required generally  and building in the ability to dial capabilities and operations up and down as needed, on a variable cost base, offers greater resilience and opportunity for continued value creation. 

Another challenge for value creation in the current market, and where EMS can be helpful,  is that the value drivers aren’t necessarily static over time – in fact, there’s been a significant shift just in the past year. COVID-19 highlighted how closely connected the business world is to the wellbeing of society as a whole. Expectations have changed; business leaders need to consider a much wider group of stakeholders and companies are expected to do more than simply grow profits. The preoccupation with cost reduction alone is eroding, with renewed interest in purpose, ESG, and business and operational resilience. A resilient organisation that can respond quickly to external shocks, but also flex to take advantage of new opportunities is the new gold standard – value and resilience, in other words, go hand in hand. Functions delegated to EMS are as healthy and effective as they could possibly be – allowing the rest of the organisation to focus on their core capabilities and truly create value. 

These old and new challenges convince us more than ever of the need for a capability-driven value creation strategy that focuses on making the most of an organisation’s capabilities. But in a complex business world, that means having the time and resources to consider strategy and recognise which capabilities make the organisation unique, and which could be done more efficiently and effectively by someone else. What can and should the business focus on that will give it a competitive edge?

Using EMS to manage non-core functions allows a business to deliver quickly while driving improvements, as well as being able to focus on core capabilities that really drive value.  

Read more about our range of Execution Managed Services.

Or talk to us about Value Creation opportunities for your whole organisation.

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Chris Samson

Chris Samson

Partner, PwC United Kingdom

Tel: +44 (0) 7718 865185

Michael Gibbons

Michael Gibbons

Deals Head of People, PwC United Kingdom

Tel: +44 (0)7841 569523

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Christopher Temple

Christopher Temple

UK Value Creation leader, PwC United Kingdom

Hein  Marais

Hein Marais

Global Head of Value Creation and UK Transaction Services Leader, PwC United Kingdom

Tel: +44 (0)7740 064729