VEP helps clients manage strategic risk and opportunity in alliances.
We help confirm the strategic rationale for alliance and screen prospective alliance partners for strategic fit with
the appropriate alliance in the control/commitment spectrum.
Once a prospective partner is found for the right type of alliance, we assess the strategic risks and opportunities of the alliance:
1. Market demand trends, drivers, risks, opportunities
2. Market competitive intensity, drivers, risks, opportunities
3. Partner 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 with those derived from other 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 range for the client’s value contribution to the alliance. We advise on the ownership, governance, management and organisational structure of the alliance.
We provide ammunition for the client to negotiate deal price and structure. Or to walk away.
VEP helps get the strategic alliance decision right.
Contact us to find out more.