VEP helps clients manage strategic risk and opportunity in acquisitions.
We help confirm the strategic rationale for acquisition (versus e.g. alliance) and screen potential acquisition targets for strategic fit.
Once a target has been firmed up, we assess the strategic risks and opportunities of the acquisition:
1. Market demand trends, drivers, risks, opportunities
2. Market competitive intensity, drivers, risks, opportunities
3. Target competitive position, strategy and internal strategic risks and opportunities
4. Areas of prospective synergy, likely scale, risks, opportunities
We build base case cash flow forecasts for the target and for synergies, weighted by likelihood of achievement.
We derive NPV valuations and cross-check them with those derived from other valuation methods. We assess their sensitivity to the identified key risks and opportunities. We rank them by value impact and likelihood of occurrence.
We help the client plan to manage these risks and exploit the opportunities.
We draw up a value range and assist in the negotiation strategy. We provide ammunition for clients to negotiate deal price and other terms. Or to walk away.
VEP helps get the strategic acquisition decision right.
Contact us to find out more.