02.
M&A, Growth & Exit
Services: M&A Strategy, Synergy Analysis & Valuation
Project Length: 12 weeks
Industry: Financial Services
>300 staff
Engagement Snapshot
The Situation
Two major financial services providers were considering a merger to achieve economies of scale and build a stronger combined offering in a consolidating, margin-pressured industry. To progress, they required a clear view of the potential value synergies. Both customer portfolios were large and assumptions were complex.
Leadership lacked clarity on the scale of potential synergies. To validate the merger thesis, we were engaged to quantify synergies and highlight their key drivers. The engagement was time-sensitive and complicated by fragmented data sources. Leadership sought a robust, evidence-based narrative.
How We Helped
Our focus: Creating clarity and rigour around a high-stakes merger
We were brought in to cut through noise, model value upside and improve confidence on the transaction. We collaborated closely with finance and strategy functions to ensure a consistent message.
Our work unfolded in four focused stages:
1. Framed Strategic Alignment
We worked with leadership and strategy teams to align on the merger thesis: sources of shared value, drivers of synergies and referable data sources to build confidence. We developed an execution plan with checkpoints.
3. Joint Scenario Modelling
We developed financial model scenarios to test value creation under various circumstances and sensitivities. The model captured commercial upside, integration costs and execution timelines.
2. Technical Modelling & Synergies
With the plan in mind, we created an outline of the financial modelling required and data sources needed to measure revenue and expense synergies. We sought existing reference points and researched assumptions.
4. Board-Ready Deliverables
We delivered a concise board pack with key financial results, strategic rationale, synergy logic, and key risks. We classfied the key outcomes of the merger - allowing leadership focus on the syngergy drivers that mattered.
The Impact
1 / Shared clarity on value
Emphasis was given to the synergies with the strongest value potential, ensuring theories were tested and refined. Strategic resources were directed to the highest-value opportunities.
2 / Valuation and deal confidence
Moving from broad estimates to credible, quantified scenarios that reflected realistic synergy capture. Presented a clear, defensible story to leadership that the proposed deal was grounded in rigorous analysis.
3 / Stakeholder alignment
Aligning both organisations on which synergies truly created value, reducing disputes over focus areas. Created materials and engaged in discussions to facilitate stronger buy-in.