Mergers and Acquisitions

M&A, divestitures and JVs can fuel growth. A clear strategy, sourcing the right deal, sound diligence and smooth integration are crucial.

Whether pursuing scale, new technology or entry into new markets, we can help you achieve your strategic objectives through mergers and acquisitions (M&A), divestitures and joint ventures.

EY M&A consulting helps you:

  • Perform portfolio reviews to understand your best path to growth and competitive advantage 
  • Assess the strategic fit of a business by evaluating the market opportunity and potential synergies
  • Conduct diligence, including financial, tax, commercial, operational, regulatory, IT and cyber
  • Determine the right valuation and approach to capital markets for funding
  • Operationalize the deal
    EY - #1 financial advisor across league table in 2020.
    Case Study
    The better the question. The better the answer. The better the world works.
    Case Study

    Case study: How one of India’s largest public sector banks merged and transformed itself

    EY merged three large banks with smooth Day-1 integration, minimal disruption and new operating model.

    Case Study
    The better the question. The better the answer. The better the world works.
    Case Study

    How would the bank transform its operating model amidst a merger?

    Successful Day-1 integration with best-in-class operating model design led to a holistic transformation.

    One of India’s leading public sector banks merged with two other banks and the combined entity resulted in one of the country’s largest banking entities. It was the largest merger in the Indian banking industry at the time.

    At the time of the merger, the bank’s primary objective was to achieve seamless Day-1 integration with minimal customer disruption and smooth structural, cultural, operational, and functional integration. The bank sought support to manage the scale and complexity of this integration. It also wanted to ensure that the combined entity realized all synergistic opportunities for future growth.

    EY worked with the bank to deploy a destination operating model for providing a competitive advantage across the value chain. The new operating model set a foundation for scalable growth and higher efficiencies across sales, credit, collections, and internal operations.

    Business transformation road map
    Case Study
    The better the question. The better the answer. The better the world works.
    Case Study

    EY led Day-1 integration and destination model roll-out to transform the bank

    The transformation involved building an operating model with a revamped organizational structure, efficient operations and a culturally aligned workforce.

    EY conducted a detailed diagnostic and comprehensive Day-1 readiness assessment across the business, support and control functions of the bank. The key focus areas were:

    • Harmonization of products, processes and policies
    • Ensuring minimal customer disruption
    • Enhancing geographical reach with an optimum product mix
    • Alignment and integration of unified digital platforms for customers

    Subsequent to the successful Day-1 merger, EY created a destination operating model with an 18-month long transformation roadmap targeting:

    • A four-tiered credit operating model with specific focus on large corporates, mid and small corporates, micro, small and medium enterprises
    • A revamped organization structure to create specialized verticals including fintech and collections and recovery
    • A comprehensive assessment of potential cost and revenues synergy arising from the amalgamation and developing a 3-year roadmap for the bank for realizing the same
    • Seamless customer experience with inter-operability across branches and other digital and physical channels 
    Operating model transformation
    Case Study
    The better the question. The better the answer. The better the world works.
    Case Study

    The bank saw successful business transformation with an efficient operating model

    The bank is set to continue its momentum and grow rapidly to achieve its future targets.

    As the merger stabilized and concluded, the bank saw substantial improvement in its overall business and operational performance, leading to a sustainable change in the bank’s financial metrics with a significant value delivered by EY.

    20%

    Improvement in cost-to-income ratio

    13%

    Cost synergies

    3.5%

    Revenue synergies

    The engagement was led by the EY team and senior bank leaders including the MD and CXOs. The EY team included a cross-functional mix of partners, directors, senior managers and over 40+ consultants who came together to devise the merger and integration strategy for the bank.

    EY became a trusted partner for the bank by enhancing its geographical footprint, strong future roadmap and optimized target operating model. These milestones were achieved by establishing strong relationships with the senior executive management and division stakeholders.

    Transformation Realized

    Transforming businesses through the power of people, technology and innovation.
    Business operating model

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