When your stakeholders apply pressure on you for ever greater return on their investment there are a few routes you can take such as cutting costs, improving the efficiency of your operations or carving out parts of your business that are not performing as you would like them to.
Or, following a merger or acquisition, you might need to ensure a smooth transition to your new operational model, reduce costs, manage risk and leverage talent to help secure optimal performance going forward. To do this you’ll need to quickly and effectively understand the main business drivers as well as the key areas of future opportunity from the business.
Alternatively, if you’re looking to make your business more efficient (perhaps ahead of an exit) or are looking to divest part of your company (or group of companies) you need to assess the full costs of the carve-out and transitional support as well as the implications for the expected returns from the deal. You’ll also need to anticipate the bidders’ requirements to sustain competitive tension in the auction process to accelerate the deal and maximise the value you get for your company. In addition to this you need a good separation plan to make sure that disruption to business as usual is minimised and that there is an appropriate and executable level of support during the transition. Finally you’ll need to make operations more efficient following the separation.
In order to improve business efficiency you’ll need:
- To understand why you are doing a given deal and make sure you have clear objectives
- An idea of how far and how quickly your companies will integrate post-merger/acquisition
- To develop and implement a plan to maintain stakeholder support
- To put the right team in place for a successful integration
- Robust management and monitoring of any change programmes
- Visibility and control over cash
- To realise cash from current operations
- To rapidly identify and implement sustainable profit improvements
- To manage your major contracts and their risks effectively
When you work with us we can help you to:
- Assess carve-out and transitional support costs as well as expected returns from the deal.
- Anticipate buyer requirements
- Get the best value for the sale of your company or assets
- Put plans in place to minimise disruption to business as usual
- Make operations more efficient post-separation
- Review or prepare turnaround and change plans
- Review underlying assumptions of budgets and financial baselines
- Improve cash forecasting, manage and monitor liquidity
- Identify "quick wins" in working capital improvement or other cash generation actions
- Develop and implement pragmatic and realistic cost saving plans
- Create a high impact programme management office to support the delivery of turnaround/change plans
- Negotiate with external stakeholders
- Manage your contracts and suppliers
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