Dean & Company has supported M&A deals through all stages of the process: from identification and opportunity evaluation to due diligence and integration
The overarching goal of a Merger or Acquisition is to add value. While a successful merger or acquisition can enable a company to execute key components of its strategy, an unsuccessful merger can and will destroy value. Dean & Company works with a variety of clients, from Fortune 500 corporations to startups and PE firms to develop M&A strategies, identify and evaluate targets, conduct thorough due diligence and support post-merger integration. Throughout the process, we remain focused on how best to create shareholder value, which may even dictate passing on a deal in lieu of other strategies.
Dean & Company typically gets involved in a deal through our business strategy development work, on-going M&A retainer activities or as a standalone project. As Dean & Company evaluates various strategic opportunities for our consulting clients, M&A often emerges as a potentially attractive vehicle to drive value creation. If this is a viable option, we work to understand the key characteristics required in a target company and then quantitatively evaluate the targets that make the most sense. Alternatively, clients who have a steady flow of M&A opportunities, such as PE firms and pharmaceutical companies, may have us set up a dedicated team to review an on-going stream of targets or engage us to evaluate a specific opportunity.
Once a target is established, we conduct hands-on and comprehensive due diligence of the product and/or company, the centerpiece of which is a detailed financial model based on the key drivers of the business. This is supplemented in the Life Sciences industry by an assessment of the launch timing and market opportunity for new technology. Where necessary, we go well beyond readily available data and work to understand the target from the field, via interviews with industry experts, competitive research, etc. The result is an objective, quantitative view of the M&A opportunity with the key business issues understood in great detail.
A key offshoot of the due diligence process is our ability to recognize and evaluate potential profit levers within the newly integrated organization. Dean & Company will work with the management team to capture these upside opportunities, whether they are cost synergies, untapped markets, or customer bonding strategies. These opportunities are what turn a solid investment into a highly profitable one.