Value Creation in Deals — from Risk Minimization to Value Generation
Saalfrank: Classically, consultants are involved in the preparation of sales processes relatively late in the process, so that the envisaged timeline is usually given and there is little opportunity to remedy facts that reduce value. Ideally, it should already be examined and defined during the holding period what company-specific value drivers are, how these can be measured and, of course, also improved. This allows a targeted equity story to be built and marketed in the sales process. This includes not only classical financial, but all areas of value creation.
Von Hurter: We enter into a comprehensive discussion with our clients that focuses on future equity value — in other words, a realistic, future enterprise value. Of course, as Stefan mentioned, the financial data is the starting point. In the value-focused approach, however, the discussion is just getting started here. Our approach identifies value-creating measures in terms of revenue and market development, efficiency and profitability growth, and tax optimization opportunities, among others. Only by working together can holistic approaches to increasing equity value be identified.
Saalfrank: The analytics of a classic due diligence are important, coupled with experience from transactions in a similar industry and scale. In the past, this played a rather subordinate role — but if you want to implement value-enhancing measures as part of a financial due diligence, a combination of financial and industry expertise is indispensable.
Von Hurter: The same applies to creating a model by looking at measures related to sales and profitability. Here, too, experience in the relevant sector and the specific company situation plays an essential role. This often requires the involvement of several experts on detailed topics. The coordination of the individual topics and the correct mapping during the due diligence phase becomes the core challenge.