By combining objective analysis with broad industry experience, we help clients evaluate and execute complex strategic transactions to drive sustainable growth.
Change in business is constant. Regulatory environments, globalization, industry boundaries, and cost pressures are all in perpetual motion, and idleness is never an option. The complexity of managing acquisitions and divestitures, though, can be challenging for even the most experienced corporate leaders. This is why we play a critical role supporting all phases of transactions—before, during, and after—to ensure deals are consistent with corporate strategy and achieve maximum value. We work with clients to deliver an M&A strategy that targets many deals above a more sedentary approach and to develop in-house M&A capabilities in advance of and during a transaction or event.
Here's how we do it:
Our consultants combine their extensive transactional expertise with a deep understanding of specific industry sectors to support clients on four types of transactions.
Mergers and acquisitions
We help clients ensure that their M&A strategy aligns with their broader corporate strategy. We identify and assess targets based on a client's strategic objectives, potential synergies, organizational and cultural fit, and the feasibility of a deal. To help the transaction proceed smoothly, we support clients in structuring the deal, communicating its rationale to stakeholders and markets, and planning for integration. To provide a foundation for success after the deal closes, we help clients tailor the integration process, governance mechanisms, and organization to the transaction's strategic objectives. All the while, we build our clients’ internal processes and capabilities to execute successful transaction programs.
McKinsey also takes a broad view of merger management, supporting clients from preannouncement planning through postclose integration. We have supported half of the top mergers completed worldwide since 2005—many of them of unprecedented scope and complexity. We help clients realize maximum deal value as quickly as possible by tapping the best sources of value and using the right approaches to speed up integration.
Alliances and joint ventures
We analyze our clients' needs and the situations that prompt them to look for a business partner. The goal may be to enter a new market, start a new business, gain access to a technology or product, or improve industry relationships. We also assist them in identifying the best possible partners and assessing the potential for value creation. As plans for an alliance go forward, we help our clients develop the strategy and skills necessary to structure, negotiate, and implement the arrangement.
In recent years, many companies have taken a more critical look at what businesses they own and why they own them. We help clients critically assess their portfolio in order to better understand their core and noncore businesses. To support divestitures, we help clients value the relevant business, identify possible deal structures, and support key issues affecting negotiations, such as the impact on vendors and the possible need for supply agreements with the acquirer.
Initial public offerings (IPOs)
We advise our clients on the full range of public offerings, from start-ups to privatizations and carve-outs. In preparation for an IPO, we help clients improve their business to ensure a public offering captures maximum value. We also assist clients in developing capital-market strategies and in assessing IPO timing and structure. We support all aspects of preparing a company for the financial markets, including the key phases of the IPO: overall project management, business plan, valuation, financing strategy, listing documents, and analyst and road-show presentations. After a listing, we help our clients achieve the stated targets and further build the capabilities needed for success in the capital markets.