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How to maximise value post-deal

A number of academic studies show that over 70% of M&A deals fail to deliver their anticipated value, with either the planned upsides not materialising or costs being higher than anticipated.

Undertaking a successful transaction not only requires sourcing and acquiring the best deals, but also anticipating and planning for how to maximise value post-acquisition. There are a multitude of challenges and complexities in the integration process from bringing together the strategic, operational and financial systems to ensuring the culture of both businesses come together so the post-deal period runs smoothly.

How can businesses best maximise value post-deal? The key as ever is planning and ensuring that there are consistent objectives running through the acquisition process:


  • Focused due diligence. The due diligence should target the hypotheses that were used in valuing the business. Validating key value drivers will help retain focus on the rationale for the transaction which can be carried forward into the enlarged group strategy post-acquisition


  • Development of 100 day plan. Alongside the due diligence, there needs to be a clear plan for integration and transition in the immediate post-deal period. Start planning early, in particular on the key actions that need to be immediately put in place both before and after the transaction completes


  • A clear governance structure. There needs to be a clear view of how the management structure of the business looks on day one so that the acquired business does not lose momentum and there are clear roles and responsibilities. Loss of momentum is a key reason for value erosion


  • Change management. Preparing, supporting and enabling individuals and teams on both sides of the deal to adapt to the change. This is not just operational; cultural change management is also vital for a successful deal


  • Real time monitoring. Setting KPIs (of both the standalone business and enlarged group) pre-completion, and tracking these in real-time; including adjusting for any unexpected changes along the way, is not only useful for identifying improvement areas, but also may assist with smoother integration of future acquisitions


At Cowgills our team has real life industry experience of running the integration of acquisitions, as well as deep experience of running successful due diligence processes. This ensures that the advice and due diligence we provide not only looks at what happens on day one, but provides you with the necessary information and advice to assist with successful and effective post-deal integration.

So, if you are looking to undertake a business acquisition and want to maximise value post-deal, contact Andrew Nelson, Partner at Cowgills Transaction Services on andrew.nelson@cowgills.co.uk to arrange a discussion on how we can help you through the due diligence. Alternatively, you can contact us via our website here.

maximise value post-deal

The information was correct at time of publishing but may now be out of date.

Corporate Finance
Posted by Cowgills
4th October, 2023
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