Banking and Professionals of the Financial Sector (PFS): Case Study

Bank acquisition & post-merger business case of an Italian private bank

The issue

PricewaterhouseCoopers acted as financial adviser to an Italian Bank in its acquisition of the Private Banking arm of a Belgian bank. The acquirer requested investigation on the target business, a post-merger business case, a due diligence and the drafting of the agreement.

Our approach

• Develop a strategy and business case;
• Project planning of the due diligence;
• Joint client and PwC team to execute due diligence in data room with regular management meetings and target personnel discussions;
• SWOT-analysis and identification of deal breakers;
• Business plan preparation based on management assumptions;
• Develop retain/reject decision scenario and/or bid tactics.

The outcome

On-going advisory role to the acquiers management throughout the process for the:

• Identification of deal breakers in accordance with client’s goals for the proposed transaction;
• Normalization and identification of quality of earnings;
• Indicative valuation of the target;
• Business plan "post-merger".