Transaction Center Bundles BCG’s Experience and Expertise in M&A Transactions, Joint Ventures, and IPOs to Help Businesses Capture Lasting Value from M&A Activities
The Boston Consulting Group (BCG), one of the world’s leading management consulting firms, today announced the launch of its new Transaction Center—a business unit dedicated and designed expressly to helping corporations capture lasting value from their corporate-development activities.
The Transaction Center is a one-stop shop that supports businesses’ strategic decision-making processes in equity transactions. The Center concentrates BCG’s worldwide expertise in buy-side mergers and acquisitions (M&A), sell-side support, carve-outs, and joint ventures and alliances, orchestrating the capabilities and experience of the firm’s more than 300 corporate M&A experts and its extensive industry proficiencies.
BCG’s new Transaction Center is set up to help clients in three specific ways. First, it ensures that the firm’s world-class M&A transaction-execution skills are easily accessible to BCG teams around the world. Second, it acts like a switchboard, rapidly routing the toughest corporate-development questions to the BCG experts best suited to answer them. Third, the Center is where BCG’s traditional deep-sector expertise is paired with the capabilities of BCG professionals who have worked with companies on deal-making transactions in a wide range of industries.
BCG worked with the Animal Health division of Boehringer Ingelheim (BI), the world’s largest family-owned pharmaceutical company, to help the division strengthen its growth strategy, when an unexpected opportunity emerged using the Trasaction Center frame. It was a perfect fit with key elements of that strategy — a push to strengthen the division’s presence in North America, Canada, and Australia and further expand its position in the animal vaccine segment.
Another famous example of the usage of the Transaction Center is when Dutch company Royal DSM wanted assurance that it was getting fair value in its proposed joint venture with a U.S. private equity firm. They wanted truly independent input and they knew about BCG’s strong track record with due diligence in pharma and particularly in the pharma contract manufacturing space.
“That intersection point—matching BCG’s traditional industry expertise with our M&A know-how—is what absolutely differentiates BCG from all other M&A advisors,” said Munich-based Jens Kengelbach, a BCG partner who is the global head of M&A.
BCG’s move is a timely response to the value creation challenges faced by businesses in many industries worldwide. With M&A deal volumes at record levels—and carve-outs and spinoffs very much in the spotlight—business leaders are clearly eager to find new paths to growth.
“The buying and selling of entire corporations is very high on the priority lists of CEOs these days,” Kengelbach noted. “It’s easy to see why: growth is the primary driver of value creation. Acquisitions offer another way to grow when organic growth opportunities are limited. And the pruning of corporate portfolios enhances opportunities to create value.”
Still, M&A initiatives are not sure things. BCG research has consistently showed that the majority of transactions destroy shareholder value for the acquirer. Part of the challenge is that for most businesses, M&A and spinoffs are relatively rare activities—outside of everyday business operations—and it is very difficult to anchor institutional learning in the organization to help ensure deal-making success.
“The key is to start treating corporate transactions as industrial processes rather than occasional one-off capabilities,” Kengelbach said. “Our new Transaction Center will help our clients not only set up those processes but also run them with confidence. And it will enable clients to develop the skills to achieve deal-making mastery over the long term.”
The Transaction Center can be reached at transactioncenter.bcg.com.
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About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com.