In the slow growth environment that many industries face today, acquisitions can be an important element of a corporate growth strategy. Companies usually approach an acquisition with the expectation that future financial benefits – faster growth, elimination of overlapping supply or demand chain cost structure elements, streamlining of business processes, more efficient financial structures, etc. – will exceed the premium typically required for the transaction.

However, academic studies have shown that in many cases these benefits are never realized, and the acquisition can not only fail to fulfill the acquiring company's expectations, but actually reduce shareholder value. These issues are often attributed to poor integration of the acquired company, or management failures in the implementation of a plan.

Our experience has shown that a much wider set of factors drives a successful transaction and those factors occur before, as well after, the deal. In fact, the range of future outcomes that integration can affect are usually determined by how well an acquirer understands the sources of future value in an industry, selects targets that maximize combined value-creation opportunities, clearly evaluates the situation and capabilities of the target, and develops an insightful post-acquisition strategy reaching beyond cost reduction all before the deal closing.

Our Capabilities

Alliance has worked on a large number of mergers, acquisitions and divestitures for both corporate and financial clients over many years. We offer a full suite of capabilities to assist clients in activities both before and after a transaction:

Pre-Transaction Services

• Industry / Technology Scan - Scanning a broad range of industries to rapidly identify and prioritize high-potential markets and investment opportunities for our clients
• Market Entry Concepts - Defining creative growth concepts for clients in attractive investment or acquisition categories, identifying where opportunities exist to create equity value, and highlighting areas to build sustainable profit growth
• Candidate Screens - Profiling and screening potential investments or acquisition candidates in attractive businesses, and identifying the targets which maximize value creation opportunities
• Due Diligence Analysis - Analyzing the strategic, business and financial situation of top candidates, identifying key issues and risks, making acquisition and valuation recommendations, and outlining a post-acquisition strategic direction for the target

Post-Transaction Services

• Business, Action and Contingency Planning - Providing post-transaction analysis and support to clients on developing business plans, recommending organizational changes (e.g., on the level of separation or integration to be achieved), specific action plans, timelines and accountabilities, and mapping of key post-transaction contingencies
• Integration Support - Assisting management in implementing the integration or transition plan, providing hands-on implementation support in key areas where required, and helping the new combined management team find its footing on a common path

Case Study

• Creating new growth platforms through acquisition for a consumer products company
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