Innovation in transactions

Transcription

1 Innovation in transactions Data and Analytics in the Transaction lifecycle Kenneth Ingram EY Transaction Analytics

2 Markets are changing with data growth in volume, variety and velocity Business are facing incredible complexity 2.5 quintillion 20% 90% 81% new data bytes are created each day of available customer data is used of today s data is just two years old of senior executives want data to be at the heart of all decision-making 91% are using big data and analytics as part of their deal process 12% of organizations describe their analytics maturity as leading 78% of organizations agree big data and analytics are changing the nature of competitive advantage Page 2

3 Data analytics enhances speed, capability and insights across the transaction lifecycle Lifecycle stage Buy side situation Sell side situation 1. Strategic analysis Understand and validate business objectives Understand key value drivers and gaps Confirm strategy and rationale for disposal Identify and isolate business to be sold Assess exit readiness 5. Value Creation / Transaction effectiveness Quantify synergies and post-deal initiatives Identify and then institutionalise best practices Establish ongoing monitoring mechanisms post-integration Compare data and performance from acquired and legacy / existing systems Post-disposal performance monitoring 4. Negotiation and execution Support pricing and synergies case Data driven upside potential Provide information/access to finalise DD Analytics throughout the Transaction Lifecycle 2. Opportunity analysis 3. Transaction development Perform initial modelling and valuation analysis Identify key areas for due diligence Preliminary value assessment Implement vendor assistance, as needed Perform due diligence, identify business risk and refine pricing Data request and management throughout process, data analytics, dashboard reporting and presentation Define/build business to be sold Preparation for due diligence - financial, commercial, legal, tax and operational Define and prepare databooks and dashboard reporting for bidder release Page 3

4 EY s framework for Analytics in transactions From collecting the right data to monitoring success of synergy initiatives Data confidence Interactive data exploration Incremental insights Automated data cleansing and collection Databases, not Excel spreadsheets Audit trail & full transparency Post-DD activities and analytics One source of truth for all stakeholders Interactive deep-dive analysis; fact-driven Q&A discussions Connecting commercial, financial and operational KPIs Early red flags & interactive deliverables Predictive analytics and other statistical techniques Enrichment with 3 rd party data (market data, social media analytics, geospatial visualizations) Operational analytics, fraud investigation, quantification of synergies and post-deal initiatives Continuous monitoring through analytics as a service EY analytics is Sector Led Driven by deep industry expertise and tailored solutions Issue Driven Start with the business issues and decisions that matter Technology Enabled Leverage best of breed tools and analytics assets Globally Coordinated Network individuals from around the world to field the right team Value Oriented Bring a commercial sophistication oriented towards creating value Page 4

5 EY Assurance Tax Transactions Advisory Ernst & Young LLP Ernst & Young LLP. Published in the UK. All Rights Reserved. ED None EY (UK) 12/17. CSG London. The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC and is a member firm of Ernst & Young Global Limited. Ernst & Young LLP, 1 More London Place, London, SE1 2AF. ey.com