This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Explore a comprehensive M&A Turnaround Strategy developed by ex-McKinsey and Big 4 consultants. Gain insights on critical success factors and deal characteristics for effective transformation. M&A Turnaround Strategy is a 30-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.
A Turnaround can be defined as the financial recovery of an economy or an organization after a period of inertia or downturn. Several issues trigger a Downturn—issues pertaining to technological disruption, regulations, processes, organization's financial health, management, business model, hierarchy, or competition.
In order to materialize a Business Turnaround, Leadership needs to thoroughly understand the root cause(s) of the Downturn, have a willingness and plan to reform or transform, and rigorously implement the Strategy to rectify the situation (i.e. Transformation Execution).
There has been an increasing trend for Business leaders worldwide to contemplate, plan, and carry out M&A of troubled businesses to create value.
This PowerPoint presentation on M&A Turnaround Strategy outlines a robust strategy to M&A Turnaround based on lessons learnt from empirical research on the subject. The strategy revolves around 4 key M&A deal characteristics that have a profound impact on the outcome of an M&A transaction:
1. Level of Performance – Performance of the target company is directly proportional to the deal success rate and Total Shareholder Return.
2. Sector Alignment – The acquirer and target firms belonging to a similar sector have more chances of success than those from different industries.
3. Environmental, Social, and Governance (ESG) Factors – Turnaround deals are shown to have higher success rate when both the acquirer and the target company adopt a similar approach to ESG factors.
4. Deal Size – Deal size has a huge impact on the success of M&A Turnaround deal.
Each of these M&A deal characteristics is discussed in depth within this PPT. The M&A Turnaround PPT also discusses 6 factors critical for the success of an M&A deal.
The slide deck also includes some slide templates for you to use in your own business presentations, which depict M&A Turnaround Critical Success Factors (CSF) and the 4 M&A Deal Characteristics.
This presentation also provides detailed templates to help you outline and implement your own M&A Turnaround Strategy. The insights and tools included are designed to drive actionable results and enhance post-deal performance.
This PPT slide highlights the significance of Environmental, Social, and Governance (ESG) factors in mergers and acquisitions (M&A). Companies engaged in turnaround deals show a 19% higher success rate when both the acquirer and target share similar ESG approaches. A unified stance on ESG correlates with enhanced Total Shareholder Return (TSR) performance, indicating that organizations prioritizing aligned values achieve better post-transaction outcomes. The graphical representation illustrates success rates and average post-deal TSR, contrasting scenarios of alignment versus misalignment in ESG perspectives, with negative impacts of -19pp for success rate and -7pp for TSR. Strong ESG alignment is essential for optimizing M&A outcomes.
This PPT slide outlines critical success factors (CSFs) for M&A turnaround deals, which generate significant value, outperforming typical M&A transactions with a 25% positive variance in total shareholder return (TSR). Key factors include investment in research and development (R&D) for innovation, maintaining a long-term horizon for sustainable growth, and having a clear purpose to align stakeholders. Additionally, investment in transformation is essential for adapting post-acquisition, while synergy targets focus on realizing efficiencies and value creation. Quickness to action is crucial, as timely decision-making impacts turnaround success. These CSFs enhance post-deal performance, providing a framework for optimizing M&A strategies.
This PPT slide focuses on the significance of a target company's performance in the 2 years leading up to a merger or acquisition (M&A). Total Shareholder Return (TSR) is a critical metric for evaluating M&A transactions, with targets experiencing a TSR decline of less than 10% generally yielding more successful deals compared to those with a decline of 30% or more. A distressed target complicates effective turnaround strategies, emphasizing the need for thorough due diligence on the target's financial health. Statistical data supports these insights, including a t-test significance value of less than 0.15, indicating a meaningful relationship between underperformance and M&A outcomes. The visual representation of success rates and average post-deal TSR further illustrates the impact of the target's prior performance on future results.
Investor expectations play a critical role in M&A turnaround deals, significantly influencing total shareholder return (TSR) in the first year post-deal closure. A BCG study indicates that these expectations can impact TSR by up to 54% initially. Leadership must prioritize clear communication strategies to align with investor expectations, essential for sustaining long-term performance. The accompanying graph shows that while investor expectations dominate in the first year, their influence decreases to 36% by year 3 and 14% by year five. Conversely, the impact of revenue grows from 24% in the first year to 64% by year five, highlighting the increasing importance of operational performance over time. Managing investor perceptions immediately after a deal is crucial for M&A success, as failure to meet expectations can jeopardize outcomes.
Source: Best Practices in M&A, Turnaround Strategy PowerPoint Slides: M&A Turnaround Strategy PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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