Net working capital: dealmaker or dealbreaker?
Deal advisoryWhy getting working capital right is critical to deal value
After an acquisition or sale, the real work begins. Integration and carve-out processes are complex and risky. Without a well-thought-out approach, you risk losing synergy benefits, operational disruptions and staff.
Post-merger integration and carve-out processes are crucial for realising deal value. Without the right strategy and execution, even the best-structured deals cannot deliver the expected results.
We support companies through the complex process of integration and carve-outs, ensuring that transitions are smooth, efficient and in line with business objectives. Whether you are merging two companies, spinning off a division or restructuring for growth, we help you navigate the operational, financial and cultural complexities.
You realise the strategic goals of the transaction without unnecessary disruption. With a sharply executed integration or carve-out, you maintain continuity, avoid delays and maximise the value of the deal. Your organisation comes out of the transition stronger, ready for the next step.
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A common cause is a lack of focus on integration itself. The main focus is often on closing the deal, while integration is underestimated. Without clear goals, structure and leadership, confusion, overlap, or even resistance can arise within the organisation. Cultural differences are underestimated, and stakeholder expectations vary. By making a timely integration plan, involving people and communicating clearly, you significantly increase the chances of a successful and worthwhile transition.
A sale can take place without a carve-out, but in complex organisations, a carve-out is often necessary to make a business unit ready for sale. A carve-out involves legally, financially and operationally separating a division or activity from its parent organisation so that it can operate independently, or become attractive to buyers. A lack of proper carve-out planning can often lead to inefficiencies, unclear cost structures or even loss of customers. A well-executed carve-out increases transaction value and avoids surprises during the sale.
When it comes to successful integration, employees are key. It is crucial to keep them well informed and actively involved from the start. Uncertainty and lack of prospects cause turnover and reduced motivation. So ensure clear communication about the consequences of integration, invest in culture reinforcement and offer the prospect of new opportunities within the organisation.
Why getting working capital right is critical to deal value
What happens when one number tells two stories? Adjusted EBITDA is designed to show “true” profitability, but in a deal context, it often turns into a tug-of-war.
If you’re preparing to sell or invest in a company, focusing on EBITDA alone can be a costly mistake. Let’s uncover why.