Transaction Advisory Services

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Operational Transaction Services (OTS)

Our Operational Transaction Services (OTS) engagement team provides a full range of hands-on, operationally focused support and advice across the M&A lifecycle, with keen focus on value, speed, risk management and stakeholder engagement.

OTS helps clients identify and realise the value from transactions as significant value is often eroded because clients don’t focus on how to go about their deal correctly. OTS offers a set of services focused on how to get it right thus enhancing value.

EY - Operational Transactions Services wheel

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EY - CFO Agenda

  • Is the business undervalued due to lack of transparency to investors?
  • Is the company or business unit underperforming?
  • Are there incoherent business models or go-to-market requirements across divisions?
  • Are there requirements to raise cash?
  • Are significantly increased investments required to continue growth?
  • Is there a changing competitive landscape or consumer preferences?
  • Are there regulatory requirements or government policy changes?
  • Are there expected to be transformative acquisitions triggering antitrust scrutiny?

Carve out

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EY - CFO Agenda

  • Does the customer require validation of estimated synergies?
  • Preparation of internal client team for acquisitive period
  • Does a tool need to be developed to manage acquisition pipeline?
  • Is support on a “live” acquisition required?
  • Augmentation of functional staff to support integration process

Integration

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EY - CFO Agenda

  • Is cash conversion efficiency below peers?
  • Are increased cash flow needed to fund Capex?
  • Is there a dividend funding requirement?
  • Is funding required for inorganic growth/acquisitions?
  • Are increased cash flows required for share buy-backs?

Working capital

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EY - CFO Agenda

  • Are there new competitive threats, often using digital business models?
  • (Planned) change of company leadership or ownership
  • Declining share price and enterprise value
  • Stagnant or declining EBITDA or revenue
  • Near debt coverage ratios and covenants
  • Market disruptions
  • New competitive threats
  • New customer acquisition rate below recent years
  • Limited transparency on profitability of individual customer and/or customer groups

Value creation

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EY - CFO Agenda

  • Operational and industry insight to give clients “an edge” in the acquisition process
  • Cost reduction upsides that give a potential exit strategy or downside protection if revenue growth fails to materialise
  • Identification of areas of risk that the client doesn’t have experience in
  • Identification of transaction issues that turn out to be deal show stoppers or cause management teams to adjust unrealistic plans

Buy/Sell side-support: Synergies

  • Improve deal financials by incorporating synergy-driven upsides
  • Increase investor confidence in deal rationale and implementation success
  • Assist in the realisation of full deal potential after a transaction is completed
  • Ensuring that integration is conducted in focused and efficient manner

Buy/Sell side-support: Operational due diligence

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Connect with us

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Contact Us

EY - Abdur Rahman Cader

Abdur Rahman Cader
Transaction Advisory Services

Tel: +27 11 772 4183
Mobile: +27 83 601 2736

EY - Richard McGarvie

Richard McGarvie
Transaction Advisory Services

Tel: +27 11 772 5200
Mobile: +27 64 286 8303


Download available for more information.

 IT as a driver for M&A success

IT as a driver of M&A success

Together with Mergermarket, we surveyed 220 senior corporate and private equity executives about the challenges and risks that IT can present in the transaction process. Learn more in our latest report and video.

Size matters in working capital

Size matters in working capital

Large companies are better at managing working capital than small- and medium-size enterprises. Learn why in our latest issue of Capital Agenda Insights.