Success in mergers and acquisitions (M&A) often requires the potential acquirer to identify opportunities to increase the value of the target. In this paper, we present the ways in which sources of additional value can be identified in buy-side M&A projects, and explain our recommended framework to assess them. We also cover some other potential value metrics.
We then describe in more detail several of the types of actions which can be carried out, including changing the level of market risk, with numerical examples of their quantification.
We focus mainly on the European Union markets (subject to the Solvency II regime), but we also touch on the United Kingdom, United States and China.