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RECOMMENDATIONS TO DECISION MAKERS
The purpose of a maturity model is to ensure that potential
improvements are defined in a holistic manner, and that the
implementation progress is transparent and quantifiable
Further reading!
Prepare, maximize purchase price and transaction certainty:
The goal is to maximize sales proceeds and reduce dependence on individual
bidders. Value-enhancing measures can help to achieve this goal and should be
included in the cross-functional planning of the TOM - in parallel with essential
success criteria such as day one readiness
Identify and assess value-enhancing measures:
In addition to any "quick wins", structural measures should also be considered.
Assessment criteria for the implementation of potential value-enhancing
measures include, among other things: the window of opportunity, cost, impact
on M&A process planning, separation and carve-out implementation, the buyer
universe, the potential impact on purchase price, influence on scalability,
investment requirements and stakeholder interests
Use carve-out momentum:
Any historic weakness in the carve-out business should be eliminated as far as
possible. The use of value-enhancing measures in connection with the carveout
offers the opportunity for a (partial) new start, so the default should be to
consider these unless there is good reason not to
SURVEY RESULTS
Are value-enhancing measures typically planned or
still being implemented in preparation to increase
the transaction value?
58% Yes
36% No
7% Other*
* Partially, depends on the closing
mechanism and on the transaction
and the deal
If yes, which measures do you typically address?
59% Implementation of cost reduction
programmes
44% Optimization of working capital
management
41% Implementation of revenue enhancement
programs
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