M&A Strategy Design and Execution Support to Strengthen the EC Business

[Engagement Scope]

• Business vision and M&A scenario development: Building on the medium-term management plan and business policy, we redefined the positioning, role, and vision of the EC business. We then developed multiple M&A scenarios to deliver growth, and established business plans grounded in each scenario.
• Market research and target selection: Along the lines of each M&A scenario, we conducted detailed research on the market environment of the target categories and on the activity of players of various sizes — large, mid-sized, and small — across each domain. We narrowed down candidate markets, companies, and services, modeled the synergies, business models, and impact value with each, and developed concrete M&A plans.
• Execution support for negotiations and deal discussions: Aligned with the M&A plans, we developed the post-acquisition business model and deal-discussion materials. We further delivered support — from arranging appointments with each target company through to live deal and negotiation settings.
• Driving cross-divisional coordination: In developing the business strategy and the M&A strategy, we worked across two divisions — the overall business division and the alliance division — providing hands-on support and driving coordination.

[Challenges]

• The telecommunications operator had expanded its EC business with an eye to growing line-subscription share and the points-based economic sphere, but was falling behind in competition against the major full-line EC players.
• The client was wrestling with the medium- to long-term growth strategy for the EC business, and growth via M&A of external companies was needed.

[Results]

• Established the overall direction of the business in light of market research and business challenges, and developed M&A scenarios in multiple patterns.
• Supported the work end-to-end — from narrowing down candidate markets, companies, and services, through quantifying synergies and business impact, to negotiations with each company.