Advanced data analytics increases confidence in portfolio decisions and underpins a successful divestment

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Can analytics simplify the complex?

In an era of increasing data availability and complexity, companies need to lift their analytics capabilities if they want to get ahead.

At EY Transactions, we define analytics as the transformation of complex data sets using strategic, financial and operational algorithms — to give you interactive access to enriched information, so you can drive faster and more decisive portfolio decisions. We refer to these forms of analytics as transaction analytics.

Our transaction analytics methodology combines advanced analysis and algorithm development with a company’s full range of relevant structured and unstructured financial and operational data.

We correlate those internal data sources with meaningful external information, including from governments, reporting agencies, weather centers, traffic data centers and social platforms, to give you a fuller picture.

Using transaction analytics is not only important for decision-making, potential investors are also demanding increased access to detailed transaction data. Vendors who invest early in transaction analytics can be better prepared for buyer questions, increasing their ability to deliver the full transaction value potential often in an accelerated timeframe.

 

How senior executives rate their analytics capabilities

EY - How senior executives rate their analytics capabilities

Nearly half (43%) of companies are planning to divest within the next two years. Executives understand that they need transaction analytics to make better portfolio and divestment decisions. But they also know they have not yet spent time working through their data challenges or putting the right set of algorithms in place to improve insight.

 

Understanding the divestment challenge

EY’s transaction analytics bring speed, clarity and confidence to help you get the right answers to difficult divestment questions:

Do you have access to lots of data but can’t use it to draw insights?

Are you wasting time and money synthesizing data from multiple systems?

Have you considered using transaction analytics to anticipate and prepare for the kinds of questions buyers will ask?

Even with strong insights into your data, are you clear about how to make best use of it — before, during and after your divestment process?

Are you presenting the data in the easiest and best way to help potential buyers build the strongest business case possible for your divested business?

 

Four ways in which transaction analytics can help drive better divestments

1 Prepare for a sale before you need a buyer

Proactively utilize analytics to better understand the true value of a non-core business and whether an exit is the best option.

2 Expand the pool of potential buyers

Model different exit scenarios to structure the sales process to generate the most interest.

3 Take a buyer’s point of view

Stress-test data with a buyer’s lens. Asking yourself the same questions as the buyer will help you prepare better answers.

4 Prepare, prepare – and prepare some more

Even with strong insights into your data, are you clear about how to make best use of it — before, during and after your divestment process?

 

Different types of analytics

At EY, we provide capabilities across the different types of analytics bringing you insights from financial modeling, social media analytics and other technologies, e.g. robotic process automation, machine learning and artificial intelligence.

  • Descriptive analytics

    • Uses historical value-based data to analyze the core business and understand its historical performance
    • Factors in strategic, financial and other operational dimensions and levers
    • Provides insights around how assets can be packaged for sale
  • Predictive analytics

    • Uses business impact analysis to predict future outcomes
    • Helps sellers communicate top line synergies through cross-sell and up-sell opportunities
    • Allows sellers to stress test data from a buyer’s perspective enabling earlier focus on the core value drivers
  • Prescriptive analytics

    • Uses predictive scenarios to help optimize portfolio performance and enable better divestment decisions
    • Assesses how to optimize financial and operational performance within the overall company strategy
    • Defines how to leverage multiple and sometimes competing priorities

 

What you can expect from EY?

We apply a leading approach and tools to your transaction analytics, but we never forget that data is translated into insights by humans. That means we bring the human element to your transaction, using our insights to better understand your transaction and what’s most important to you.

EY - Sector-led

Sector-led: Driven by deep industry experience and tailored services.

EY - Issues-driven

Issues-driven: We start with the business issues and decisions that matter.

EY - Technology-enabled

Technology-enabled: We leverage leading tools and analytics assets.

EY - Globally-coordinated

Globally-coordinated: Our global network means we bring the right team to your transaction.

EY - Confidentiality-sensitive

Confidentiality-sensitive: We understand the sensitivities of storing and sharing data.

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