Success factors in post-merger integration

Entering foreign markets and reaching new customers, realising cost savings or extending product portfolio: The rationale for mergers and acquisitions vary from deal to deal. In some cases, deal makers are able to reach their expected synergies quickly. Other mergers and acquisitions will not add the value the deal makers were hoping for. What are the main reasons why some deals are sustainably successful while others fail to meet expectations?

That was the question we wanted to answer with our recently published analysis “Success factors in post-merger integration (PMI). “  The study concludes that successful deal makers excel in four areas of the PMI process:

– achieving synergies,
– completing the integration within an ambitious timeframe,
– successfully managing culture and change, and
– implementing strong project governance.

Synergies are key

Synergies are a key to success and a necessary precondition to creating value with a merger or acquisition. Successful deal makers tend to integrate deeper than less successful acquirers. Businesses that are successful at integrating usually integrate not only support functions, but also core functions such as research and development.

Balance between speed and quality

Successful deal makers complete most of the integration within one year after closing. Businesses managing a speedy integration will benefit from the positive effects of a merger much sooner, enabling them to quickly return to daily business. The challenge lies with finding the optimum balance between the speed and quality of the integration. Too speedy an integration is risky: businesses may take uninformed decisions and overlook important aspects.

Actively managing culture and change

Establishing culture and change management during the integration process is one the most important success factors. Our survey indicates that companies that put culture and change management at the heart of their integration process perform considerably better. For the deal to be sustainably successful, businesses should focus on keeping key talents in the firm and engaging employees.

Strong project governance will pay off

The fourth success factor in post-merger integration is organizational: Businesses that implement strong project governance are usually more successful at integrating. Characteristics of a robust project governance include pragmatic guidelines for decision-making and on how to assign the right resources to the right activities at the right times. Strong project governance will speed up the integration process, offer support during cultural clashes as well as in managing other risks that can put integration success in danger.

The four dimensions are strongly interlinked

Our analysis shows that the four main success factors are strongly interlinked: Companies who perform well in one dimension also tend to excel in the other three. Businesses who take the four success factors identified in our research into account throughout the integration process have good chances to reach their expected goals – no matter whether these are  to conquer new customer segments, to build expertise, or to cut costs.

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Contact

Dr. Claude Fuhrer
Partner and M&A
Integration Leader PwC Switzerland
+41 79 312 80 82
claude.fuhrer@ch.pwc.com

Dr. Rosi Liem
Director and M&A
Integration Leader PwC Germany
+49 160 9953 24 02
rosi.liem@pwc.com 

PwC’s Corporate Finance Team Advises Electrosuisse on Successful Transaction

07/06/2017

PwC Corporate Finance advises Electrosuisse on the sale of its testing and certification business activities to Eurofins

Zurich | A team of PwC Switzerland led by Sascha Beer, Partner Corporate Finance / M&A, acted as lead advisor to Electrosuisse, the official specialist organization in the field of electrical engineering, power generation and information technology with c. 6’900 members in Switzerland, on the sale of its testing and certification business activities to Eurofins.

With more than EUR 2.5 billion in annual revenues and over 28,000 employees in 2016, Eurofins is a leading international group of laboratories providing a range of analytical testing services.

The sale to the international Eurofins Group reflects Electrosuisse’s response to the changing economic and political conditions as well as the increasing complexity and globalization in the testing and certification market and ensures that Swiss equipment manufactures will continue to gain access to international markets in the future.

The team 

Sascha Beer
Partner, Corporate Finance / M&A

Marc Buser
Senior Manager, Corporate Finance / M&A

Lasse Stünitz
Senior Consultant, Corporate Finance / M&A

PwC-Immospektive Q2/17

Interpretation of the FPRE real estate meta analysis Q2/17

Swiss economy regains it’s confidence. While revenues in the construction industry remain above average the market for rental apartments is seeing bad omens for the first time. The forecasted economic growth is optimistic and likely to bring a pick-up in demand for office space.

More information

Contact

Kurt Ritz
Partner, Real Estate Advisory
+41 58 792 14 49
kurt.ritz@ch.pwc.com

Marie Seiler
Director, Real Estate Advisory
+41 58 792 56 69
marie.seiler@ch.pwc.com

Samuel Berner
Real Estate Advisory
+41 58 792 17 39
samuel.berner@ch.pwc.com

PwC Deal Talk – Doing Deals in France from a Swiss Investor’s Perspective

Edition 3/2017

With nearly 600 kilometers of common border, France and Switzerland have historically maintained close trading ties. In 2015, Swiss exports to France amounted to USD 14.4 bn mainly consisting of pharmaceutical and chemicals products and watchmaking items. With cumulative invested capital of EUR 42.4 bn at the end of 2015, Switzerland is amongst the biggest foreign investors in France.

France recently emerged as one of the most active European countries in terms of venture capital investments, paving the way for further foreign capital inflow. In the meantime, the French economy is slowly recovering from the 2008 global financial crisis and has shown a GDP growth reaching 1.1% in 2016. This recovery was also visible in M&A activity, which increased in terms of value and number of deals, particularly in the past three years.

Nonetheless, the French market is distinct from the rest of Europe and investors need to be aware of some unique features applicable to transactions. With first-hand experience and local teams on the ground, PwC can help you to avoid common pitfalls when doing deals in France.

Read Attachment

Contact Us

Sascha Beer
Partner
Corporate Finance / M&A
Tel. +41 58 792 1539
sascha.beer@ch.pwc.com

Nico Psarras
Partner
Head of Transaction Services
Tel. +41 58 792 1572
nico.psarras@ch.pwc.com

Maxime Dubouloz
Head of M&A Western Switzerland
Tel. +41 58 792 9058
maxime.dubouloz@ch.pwc.com

Mathieu Gravier
Senior Manager, Transaction Services
Tel. +41 58 792 9300
gravier.mathieu@ch.pwc.com

 

PwC Deal Talk – Doing Deals in the US

Edition: 2/2017

The US is an important trade partner for Switzerland. In 2015, Swiss exports to the US amounted to USD 37bn and mainly consisted of pharmaceutical products, metals, optical and medical instruments, organic chemicals, clocks and watches, machinery and mechanical appliances. With a total cumulated invested capital of USD 258bn as of 2015, Switzerland is among the ten largest foreign direct investors in the US. Despite a strong US dollar, the US currently offers an attractive, innovation driven macroeconomic environment with strong growth prospects. Hence, attractive investment opportunities arise for Swiss investors. While the US market has some similarities to the European market, there are some unique features that investors need to be aware of. With first-hand experience and local teams on the ground, PwC can help you to avoid common pitfalls when doing deals in the US.

Read PwC Deal Talk 

 

Please do not hesitate to contact us.

Sascha Beer
Partner
Corporate Finance / M&A
+41 58 792 15 39
sascha.beer@ch.pwc.com

Andreas Plattner
Director
Corporate Finance / M&A
+41 58 792 44 10
andreas.plattner@ch.pwc.com

PwC Deal Talk – Doing Deals in Canada

Edition: 1/2017

DealTalk_E1Canada is an important trade partner for Switzerland. In 2015, Swiss exports to Canada amounted to USD 3.4 bn and mainly consisted of pharmaceutical products, organic chemicals, scientific and precision instruments, machinery and equipment, clocks, watches and parts. Moreover, with a total invested capital of USD 8.9 bn at the end of 2015, Switzerland is also among the ten biggest foreign investors in Canada.

The current weak Canadian Dollar offers attractive investment opportunities for Swiss investors. While the Canadian market has some similarities to the US and European market, there are some unique features that investors need to be aware of. With first-hand experience and local teams on the ground, PwC can help you to avoid common pitfalls when doing deals in Canada.

Read the PwC Deal Talk

 

Please do not hesitate to contact us.

Sascha Beer
Partner
Corporate Finance / M&A
+41 58 792 15 39
sascha.beer@ch.pwc.com

Michael Huber
Senior Manager
Corporate Finance / M&A
+41 58 792 15 42
michael.t.huber@ch.pwc.com

Ticino Management: Complimenti per la trasmissione

ticino_managementOgni anno in Ticino almeno mille aziende devono essere cedute o trasferite ai figli. Eppure solo poche decine impostano un processo strutturato di trasmissione aziendale. Le altre o chiudono o vendono – spesso a un prezzo non adeguato – oppure affrontano la sfida a occhi chiusi senza chiedere consulenze strutturate, con tutti i rischi del caso.

Leggete l’articolo.

 

Marco Tremonte, direttore della divisione Corporate Finance/M&A di PwC in Svizzera rimane a vostra disposizione per ultieriori domande in merito alla Successione.

Deal Cycle Framework

Ein Deal – Ein Team

Keine Lücke von der Strategie bis zur Umsetzung: Dass das über den Erfolg oder Misserfolg von Unternehmen entscheidet, ist bekannt. An eindrücklichen Beispielen zeigt das auch das kürzlich erschienene Buch «Strategy that works – How winning companies close the strategy-to-execution gap».

Was bei einem einzelnen Unternehmen spielentscheidend ist, gilt umso mehr beim Kauf, beim Verkauf oder bei der Fusion von Unternehmen – kurz beim Deal. Auch hier bringt es einen grossen Mehrwert, wenn die Unterstützung bei den strategischen Vorüberlegungen, bei den konkreten Abklärungen aller Finanzfragen, Bewertungen, Steuerthemen, möglicher Zusammenschlüsse und Personalthemen bis hin zur finalen Integration aus einer Hand kommt. Denn nur so entsteht sicher keine Lücke auf dem langen Weg von der Idee bis zur Integration.

Das Deals-Team von PwC Schweiz betreut den ganzen Deal: alle Schritte aus einer Hand. In einer Artikelreihe im Schweizer Treuhänder/Expert Focus (Schweizerische Zeitung für Wirtschaftsprüfung, Steuern, Rechnungswesen und Wirtschaftsberatung) haben wir einige wichtige Aspekte eines Deals herausgepickt und genauer beleuchtet: Als schnelle Vertiefung für alle, die sich dem Thema nähern möchten.

Lesen Sie den ganzen Artikel hier.

 

PwC-Immospective

Interpretation of the FPRE Meta-analysis Real Estate 1Q/16

The Swiss economy will struggle to gain momentum until 2017. However, farsighted investors may benefit from this situation. While prices for residential properties may have peaked, office properties in well-developed “B” locations might offer good investment opportunities. The slow economic recovery will increase demand for such properties. Owners of retail properties are also waiting for this kind of recovery. So far, consumers have spent their savings from low energy prices at online retailers or at foreign locations close to the Swiss border.

Find out more in the latest issue of PwC-Immospective for the 1. quarter 2016.