Mergers & Acquisitions Advisory
Commercial insight for better transaction decisions
Mergers and Acquisitions can provide a powerful route into new markets, add capabilities, accelerate growth or strengthen an organisation's competitive position. But understanding the financial characteristics of a target is only part of the investment decision. Buyers and investors also need to understand the market in which the business operates, its competitive position, its customers and the credibility of its future growth assumptions.
Souter Point provides strategic and commercial support for Mergers and Acquisitions, combining detailed research with specialist market knowledge to help clients understand the opportunities and risks surrounding a potential transaction.
Our approach starts with the investment thesis and the questions that need to be answered. We then build an evidence base using market data, competitor intelligence, customer and procurement information, regulatory developments and other relevant sources. Findings are tested against the assumptions underpinning the transaction, helping clients distinguish between credible opportunities and areas requiring further investigation.
How we can help
Our Mergers and Acquisitions Advisory work includes:
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Commercial due diligence – independently testing the commercial assumptions supporting a proposed transaction;
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Market assessment – examining market size, growth, structure, trends and future demand;
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Competitive positioning – assessing the target's position, differentiation and capabilities relative to competitors;
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Customer and procurement analysis – understanding major customers, contracts, procurement pipelines, buying behaviour and concentration risks;
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Growth assumption validation – testing forecasts against market evidence, addressable opportunities and realistic routes to growth;
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Strategic fit – assessing how an acquisition complements the buyer's existing capabilities, markets and strategic objectives;
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Synergy assessment – identifying potential commercial, capability and market-access benefits; and
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Post-acquisition strategy – helping translate the investment rationale into priorities for growth, integration and market development.
The result is independent, evidence-led commercial insight that complements financial and legal due diligence, helping investors and corporate buyers make better-informed acquisition decisions and develop a clearer strategy for creating value after completion.
Case Study: Advisory Services for a $2.5bn acquisition
When a global, market-leading company was put up for sale, a consortium of a Swiss private equity firm and a Canadian pension fund appointed Souter Point to advise on the deal.
Our industry expertise and commercial experience let us contribute much more to the M&A process than simply providing subject matter expertise. Souter Point assessed the quality and accuracy of the data in the investment memorandum, commercial due diligence, and vendor due diligence documents; identified where 'colourful language' may obscure meaning; advised on the robustness of market forecasts; and assessed future profitability projections.
Because the target firm was highly sought after, with at least three consortia bidding, but there were still outstanding concerns about the quality and accuracy of the data room artefacts, it was crucial that our client not overplay their hand and bid too high. When our client was selected as the preferred bidder, they held firm on their valuation based on Souter Point advice, and ultimately walked away from the deal.
Several years later, after market conditions changed dramatically following the Global Pandemic, a senior partner who worked on the deal at the private equity company said they were "relieved" they had not increased their offer, as the investment would have been highly detrimental to their fund's profitability.
Case Study: Growth and Equity Story Development
When a FTSE 250 company sought to dispose of 12 businesses no longer part of its core strategy, Souter Point was appointed to support the company's corporate development team in drafting growth and equity stories for the businesses.
Not only did these businesses no longer contribute to our client's core strategy, but they also had no discernible synergies between them. Souter Point led the development of growth and equity stories for businesses in industries as diverse as insurance, mortgages, facilities management, business travel management, railway ticketing services, and paging.
Souter Point interviewed each business's managing director and department heads, analysed company reports, and conducted primary research to develop equity and growth stories that explained why investors should be interested in the business. Our client's corporate development department incorporated our outputs into the investment memoranda created to market the businesses, and all 12 businesses were eventually sold to trade or institutional buyers.
Book an exploration call
Book a free 30-minute exploration call to discuss your organisation's Mergers & Acquisitions needs. Just complete the below form and we will be in touch to arrange a call.