乐鱼(Leyu)体育官网


In today鈥檚 deal environment where market dynamics readily shift as do geopolitical impacts, deals need to be executed faster and with greater precision than ever before. Stakeholders are also calling for tangible value outcomes across a broader spectrum of the business 鈥� immediately within the first quarter of striking the deal and for years beyond.

Successful dealmakers understand that value creation cannot be a post-deal afterthought聽鈥� it鈥檚 a strategic imperative that must be embedded from the very start. To unlock the full value potential of a transaction and achieve the intended objectives, due diligence must evolve to assess a broader scope of risk factors, such as ESG, digital assets and human resources, while also identifying and assessing all aspects of value opportunities.聽聽

By embedding value creation into the due diligence process, dealmakers can gain the information and insights they need to navigate any potential deal complexities and make more precise and confident decisions with greater speed. Longer-term, analyzing value can also help dealmakers achieve improved outcomes聽鈥� transforming transactions into opportunities for transformational growth.

Value diligence

Realizing value in a transaction doesn鈥檛 happen by chance. It takes deliberate focus and strategic effort from the very start. Scoping out value opportunities during the due diligence phase聽鈥� what 乐鱼(Leyu)体育官网 professionals call value diligence聽鈥� demands a rigorous, and integrated approach that involves deep sector and functional expertise, strategic line of sight and advanced data analytics to help uncover and enhance potential value.

At 乐鱼(Leyu)体育官网 firms, our professionals begin value diligence with our value driver trees. Tailored to address the distinct challenges and opportunities of various industries and sub-sectors, these tools help our teams assess the key levers of value within a business that drive revenue opportunities, cost optimization and working capital improvements. For example, analyzing the sales levers of a technology company might involve assessing the number of third-party sales partners, the strength of those partnerships and the resulting sales activity and revenue.聽

Data-backed value opportunities

Analysis at this granular level is then validated and quantified with internal and external benchmark data that is further enhanced with insights from sector and functional specialists. Bringing it all together, we offer dealmakers deeper, more nuanced insights of a deal鈥檚 value, verifying the feasibility and resilience of opportunities under different market conditions or industry dynamics.

With such information available during the due diligence phase, dealmakers can better assess the scale of a deal鈥檚 opportunities, and determine with greater confidence, if a deal should be pursued, whether better negotiating points are needed, and ultimately set the right price.

There are other advantages too. In sell-side transactions, for example, early insights pre-exit allow vendors to implement strategic improvements that enhance the business鈥� financial position and overall attractiveness to potential buyers聽鈥� strengthening the deal thesis and delivering tangible benefits that extend beyond the transaction itself. Executing on these prior to the deal process enables sellers to realize this value in the deal price.

Value diligence helps buyers and sellers identify and deliver 鈥渜uick wins鈥� tied to areas such as working capital cash flow release, revenue improvement or cost optimization. In a recent deal, managed by 乐鱼(Leyu)体育官网 Australia, we were able to uncover product pricing upsides for a large global fuel and convenience retailer. With evidence coming out of a strategic initiative review during the sell-side due diligence phase, the client optimized its pricing approach during the transaction process. By acting early, the seller was able to enhance pricing across its network, execute operational efficiencies and enhance the overall value proposition to buyers.

Delivering value beyond diligence

Value diligence offers benefits that extend far beyond the due diligence phase. With strategic clarity, dealmakers can better prioritize and action the more critical opportunities during the integration phase, while using other insights to help shape and support longer-term growth strategies.

Realizing such value requires more than identifying opportunities. It calls for a team with the right skills and capabilities, and continuity to turn strategy into action. When the same team who uncover potential value during due diligence stays with you through delivery, they can bring greater execution certainty, consistency and speed.

Whether it鈥檚 achieving quantifiable financial gains, enhancing deal resilience, or laying the groundwork for sustainable and transformational future growth聽鈥� having an team that can draw on a broader set of capabilities and work should-to-shoulder with you can help ensure that the value identified is the value delivered.聽

A practical framework for value diligence

Value creation isn鈥檛 an abstract concept. It鈥檚 a deliberate, structured process that requires the right tools, sector and functional experience, and value-focused approach to deliver meaningful results.聽

  • Assess value alongside risks

    Approach value creation analysis with the same rigor and priority as you assess a deal鈥檚 broader set of risk factors. This dual focus transforms due diligence into a balanced process that helps safeguard against potential pitfalls, while offering a proactive strategy for long-term growth and resilience.

  • Assess value levers

    Assess value using sector-specific value levers, validated and quantified by internal and external benchmarks, to tailor actionable opportunities to your business. Such structured and detailed analysis can help pinpoint and prioritize potential value opportunities.聽

  • Develop a value roadmap

    Translate the value opportunities identified during due diligence into a clear action plan, prioritizing quick wins (i.e., integration synergies) and long-term opportunities, mapping each action against timelines and the experience required. A strategic plan can help speed up the time to value realization, at the deal鈥檚 close and beyond.聽

  • Integrate functional experience

    Involve functional specialists (i.e., finance, operations, technology) to help identify, refine and deliver value creation recommendations. This can offer a more detailed and well-rounded approach that reflects the complexities of the business, while having access to the team who can help activate the opportunities.聽

How 乐鱼(Leyu)体育官网 professionals can help

乐鱼(Leyu)体育官网 takes a value-focused approach to due diligence to help better position clients to win. We do this by bringing together global methodology and sector-specific value drivers to deliver holistic insights to enable dealmakers to make rapid, confident decisions to grow their business. This approach seeks to transcend traditional financial due diligence to assess an expanded universe of risks and rewards. Leveraging proprietary data analytics and insights, along with deep sector and functional experiences, 乐鱼(Leyu)体育官网 professionals work to identify the levers that can create value across a business.

乐鱼(Leyu)体育官网 firms鈥� support extends beyond a deal鈥檚 close, by orchestrating dedicated teams of professionals across the globe to deliver measurable performance improvements that can help create quantifiable value across a business.


Transaction Services

Helping you realize desired results with a deliberate, forward-thinking approach to deal planning, execution and integration.

Integration & Separation

Helping you realize value when integrating or separating a business from Day 0 to Day 1000 and beyond.

Strategy

乐鱼(Leyu)体育官网 Global Strategy Group combines the right blend of strategy, sector expertise and data-driven insights to deliver a bespoke approach that drives performance transformation with tangible financial impact.

Our insights

Due diligence and the digital footprint

Assessing the risks and opportunities of digital assets and data

The human side of due diligence

Assessing a deal鈥檚 people-related risks and opportunities

Global ESG due diligence + study 2024

Moving from risk to value creation

The future of due diligence

Sustainable deal value comes from a deeper, more expansive look at a deal鈥檚 risks and value opportunities

Our people

Craig Mennie

Global Head of Transaction Services

乐鱼(Leyu)体育官网 Australia

Steve Sapletal

Principal, Transaction Strategy & HCLS Strategy Leader

乐鱼(Leyu)体育官网 in the U.S.

Javier Rodriguez

Global Head of Strategy

乐鱼(Leyu)体育官网 International


Connect with us

乐鱼(Leyu)体育官网 combines our multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. Connect with our team to start the conversation.

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