M&A Strategy

Our M&A Strategy practice works in alignment with the client’s corporate strategy, to define the parameters under which the acquisition targets shall be identified and evaluated. We help you identify target markets and potential targets, and support an efficient transaction process even for the most complex deals. We help you align deals with your strategic business objectives, maintain compliance and enhance value from integration and potential upside opportunity.

M&A Strategy is developed considering the following key factors:

  • Strategic Vs. Financial investment including the average investment holding period
  • Core business/products/services Vs. diversification into new businesses/products/services
  • Existing geographies Vs entering new geographies
  • Fund allocation for M&A (average transaction size depending on type of business)
  • Expected financial parameters and hurdle rates (e.g. IRR and Payback Period)

Our approach to define M&A Strategy services includes:

  • Alignment with the corporate strategy - The need for M&A as a growth strategy should be aligned with strategic objectives and business plan of the organization. To give the M&A strategy clear guidance, we can help a company refine its corporate strategy by identifying current and future growth opportunities, evaluating competitive market position, and seeking portfolio-improvement opportunities
  • Review inorganic growth paths - Define areas that require inorganic growth to leverage market opportunities by analyzing competitor actions and customer demands. We will explore opportunities for horizontal and vertical integration or diversification that can improve competitive advantage and help in value creation for the Shareholders
  • Define target profiles - Identify characteristics of a model target by identifying capabilities within the organization that need to be enhanced as well as those the company cannot afford to have undermined through an acquisition
  • Whatever type of transaction a business is contemplating - an acquisition, disposition, merger, joint venture or restructuring – tax planning and your cash flows optimization must be done at the beginning of the M&A transaction. Our M&A tax specialists can help you structure your transaction to ensure that it is efficient in the context of commercial and financial considerations. Holding Company structure and the location of holding company (SPV) from the viewpoint of Double Taxation Avoidance Agreements affecting taxation of Royalty, Dividend, Management Services and Capital gains tax are some of the important considerations in Cross Border Tax planning