Evaluating your deal

 

Once you have decided to acquire a specific business, you will need to gain more insight into that business to make a detailed assessment against your acquisition objectives/strategy and identify any areas of commercial, financial and operational risks. 

Alternatively, as a seller of a business, you should aim to understand the potential areas of concern for potential buyers, including items that will impact the potential deal pricing. By understanding these issues in advance, your chance of mitigating them are much greater. 

Even at this early stage, buyers and sellers should keep an eye on what they may need to do if the transaction is successful. Considerations include commercial implications (such as whether it will affect customer attrition) as well as operational implications (such as redundant costs and regulatory requirements). 

We specialise in deal evaluation and will provide an integrated team from early on in the process, our services include: 

Buy-side due diligence

This can take place at various stages of the deal cycle, e.g. during the early phase of an auction process or to complement other due diligence work (top-up DD). It can also be phased in the case of a deal process with multiple rounds. Our due diligence experts work together as one team to assist you to understand and evaluate the commercial, financial, tax and operational aspects of an acquisition of a Financial Services target. In addition, our structuring experts can assist you on the best way to structure the proposed acquisition.

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Early identification of integration hurdles

During the deal evaluation process, various potential hurdles to integration will be identified. Our operational experts with financial services industry experience understand where hurdles or issues exist and can assist you to early identify these areas so as to include in your first “100-day plan” to support a smooth integration process.

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Vendor due diligence and assistance

When a company is up for sale or selling off one of its parts - it needs to show an in-depth report on its financial health to potential buyers. This analysis is called vendor due diligence. PwC provides comfort to both buyers (acquirers) and sellers (vendors) with an independent view of the business, encompassing its performance and prospects. 

If you do not require an independent report to share with potential buyers, our financial services due diligence experts can work alongside you and advise you on how a buyer would view your business; with the objective of preparing your company for a sale process.

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Purchase price allocation and impairment issues

We can undertake fair value accounting (including the valuation of intangible assets) in order to meet the requirements set out in the relevant business combinations standard e.g. IFRS, US GAAP, Chinese GAAP, and other Asia Pacific accounting standards.This can be particularly difficult in asset heavy transactions such as insurance and banking transactions (given the potential for adjustments on existing tangible assets can be significant). We can also support you in preparing/reviewing their ongoing goodwill impairment tests following a transaction.

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Services offered:

 

Contact us

Chris ST Chan
Financial Services M&A Leader, China, Hong Kong and Outbound Investments
Tel: +[852] 2289 2824 /+[86] (10) 6533 7789 /+[86] (21) 2323 7780
Email

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