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MERGER AND ACQUISITION
Pricing and margin management strategy is a critical pillar to ensuring the value of any merger or acquisition is realised. When two companies are merged, pricing strategies and sales cultures are often misaligned causing margin impairment and sub optimal profit outcomes. In a private equity takeover, care must be taken to ensure that the company is managed for profit, and not for revenue or market share
Pricing Insight can perform a pricing and margin due diligence on your proposed takeover target to identify potential margin upside, evaluate competitor pricing strategies and assess industry profit potential over a 3-5 year time horizon. A pricing due dilligence report provides you with the confidence to properly evaluate new commercial opportunities and maximise return on funds employed
PRIVATE EQUITY
Engage Pricing Insight to work with your team to undertake due diligence on a potential acquisition, leveraged buyout or listings. We will develop a detailed diagnostic profile of the pricing potential within the company(s) under consideration. This analysis will provide key insights to the modelling and valuation assumptions used to develop your takeover bid price
We serve in a lead advisory capacity to ensure your company gains a foothold into new markets. By reviewing current pricing practices and developing margin enhancement programs, we have generated between 2.0-9.0% points of revenue for ASX and Fortune 500 companies. For every $100M business with EBIt of 10-15%, earnings growth of between 30-100% can be realised using Pricing Insight's methodology
PRICING INSIGHT'S METHODOLOGY Due Diligence
| - Pricing Insight can evaluate a business' pricing power and quantify
the pricing 'size of prize'. By using our Diagnostics and profitability analyses,
we can assess the net worth of the company(s) or organisation(s) in discussion
- We gather quantitative and qualitative data on the risks involved, develop
a compatible negotiation framework and finally value the transacion
- As an objective and independent third party participant of your investment,
Pricing Insight will ensure your company implements smart merger and
acquisition strategies and manages the planning process effectively
| Pricing Optimisation and
Execution
| - Once the merger or acquistion agreement is finalised, the next critical step for
your company(s)' success is the integration period
- We offer the additional benefit of working with your new organisational
structure to create an effective centralised price architecture
- This involves conducting margin optimisation at a SKU level to drive your
incremental margins and re-aligning your business' pricing management directly
to your new pricing initiatives | | | |
To see how Pricing Insight can assist on a potential merger or acquisition or for further inquiries, please contact us on:
+61 2 9091 0226
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