Strategic M&A as a growth option
M&A and divestments
Flexible capacity for executing mergers, acquisitions and divestments from initial analyses all the way to deal completion.
Recent M&A and divestments work
Problem
Due to a stagnant local market, a Northern European consumer goods company sought rapid growth in Central and Eastern Europe. Greenfield market entry opportunities were limited due to consolidated market structure and the company's product basket was local. An inorganic growth strategy was needed.
Solution
After a systematic and extensive market, category and target analysis, Reddal and the management team developed an inorganic growth strategy to become a category leader in high-value Eastern European markets. The chosen strategy built on a 100MEUR M&A funnel and a roll-up approach.
Result
The consumer goods company now had a clear strategy to develop category leadership in key CEE markets identified as most attractive. This helped to secure financing for acquisitions and to begin discussions with selected acquisition targets. The company also had a clear action plan for post merger integration.
Problem
A B2B services company was in the process of focusing its operations onto its key markets. The future of its non-core business units was under assessment. One of the units was facing drastic market changes, and strengthening its competitive position would have required significant investments and high risk.
Solution
Reddal helped assessing the strategic fit of the different business units including market assessments and synergy estimations. In addition, valuation and group impact analyses of the business units that were deemed non-core was completed to support potential divestment decisions.
Result
The company had a well-defined portfolio strategy, with a clear underlying value creation logic and well understood synergies. The specific non-core business unit facing a challenging market was successfully divested to a local company that was looking for inorganic growth opportunities.
Problem
The owners of a Southeast Asian construction company had different views on strategy and the development of regional operations. As it was not possible to reconcile the views, it was decided to untie an underlying subsidiary joint venture structure. The issue became then how the assets and operations should be divided between the owners.
Solution
Together with the joint venture parties, Reddal defined alternative management structures of the subsidiary. Financial modeling provided clear outcomes of each alternative for all shareholders. Once a general agreement on the principles how the subsidiary should be split was achieved, work continued with developing commercial terms and facilitating further negotiations among owners.
Result
The subsidiary was taken over by one of the owners, but the solution provided concrete synergies to other affiliated companies as well. The joint venture was thus untied amicably, with each of the parties able to continue their chosen business area unperturbed. The deal and the post merger integration to the new main owner was completed on time and as planned.
