The Boston Consulting Group (BCG), a management consulting firms, launches its new Transaction Center—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 says the new Transaction Center is set up to help clients in three specific ways. First, it ensures that the firm’s 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.
“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.
“The buying and selling of entire corporations is very high on the priority lists of CEOs these days,” said Munich-based Jens Kengelbach, a BCG partner who is the global head of M&A. “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.”