mergers & acquisitions - tata consultancy services · 2020-03-17 · tata consultancy services...

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Mergers & Acquisitions

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About Tata Consultancy Services Ltd (TCS)Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match.TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering

TMand assurance services. This is delivered through its unique Global Network Delivery Model , recognized as the benchmark of excellence in software development. A part of the Tata Group, India’s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India.

For more information, visit us at www.tcs.com

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Consulting and Services Integration

The TCS AdvantageTCS offers the unique combination of deep capabilities paired with global scale and reach to deliver certainty in M&A.

n Commitment: TCS’ value proposition is rooted in owning the success of the deal with our clients to ensure their corporate longevity

n Experience: TCS’ dedicated professionals bring extensive, hands-on experience managing the most complex transactions, delivering deal strategy optimization, integration and carve-out risk minimization, and synergies and benefits maximization

n Expertise: With acclaimed expertise in all aspects of IT, TCS provides strategic to applied execution leadership and capabilities

n Ecosystem: With a focus on results, TCS orchestrates solution delivery across the range of players in an M&A event, including technology vendors

n Value: TCS’ subscription-based pricing models reduce capital expenditures and maintain operational expenses at a consistent level

n Outsourcing: TCS can take ownership of the technology and business process functions to driver further long-term, sustainable value

BenefitsTCS M&A consulting facilitates a smooth transition from deal strategy through execution and delivers:

n Transformed Operating Models informed by a Business 4.0 framework, best practice architectures, and industry benchmarks

n Simplified IT Landscapes driven by cloud-first strategies, smart templates, and pre-configured solutions

n Minimized Distraction to Business as Usual, given TCS’ end-to-end execution orchestration

These factors translate into measurable results:

n 10-25% Faster Executions, powered by agile teams and TMMachine-First Delivery Model

n 15-25% Lower Delivery Costs due to migration factories and global scale

n 7-15% TCO (total cost of ownership) Reduction through select transformation during M&As

n 15-30% Lower TSA Management Costs based on evolved technology landscape

n Minimized Execution Risks using TCS’ simulations and alliance partners

OverviewCompetition for accretive deals is on the rise and companies are willing to pay a premium for acquisitions. This raises the stakes for C-suite executives to achieve or exceed deal expectations through flawless execution of the integration. Focusing on deal outcomes and partnering with a trusted strategic advisor could help companies overcome the historical odds of failure in M&As.

Technology is the largest spend component of any deal and is the key enabler of business synergy realization and integration optimization. Information technology can play a critical role in delivering the financial and other benefits expected by shareholders. Companies need to integrate customers, employees, and critical processes while building a strategic platform—all without disrupting core business operations.

Moreover, attaining full synergy value can often lead to conflicts of priority. Investments must be carefully plotted against the time expected to achieve the values and the resources needed to meet stakeholders’ demands. In some cases, companies will require added capacity to run the business or help with executing the strategy.

TCS has proven capabilities to address these needs and has created turnkey solutions to tackle the most complex scenarios. Building on the extensive experience gathered through our work on hundreds of deals — including some of the largest in corporate history — we have developed unique methodologies that accelerate the process of weaving companies together as well as carving out and standing up independent businesses.

Our SolutionAs a strategic partner to our clients, TCS can support every aspect of each phase of the M&A deal life cycle. The core principle that guides TCS M&A consulting is co-ownership of the outcome and becoming the most effective long-term partner in running your business (see Figure 1).

Our offering spans target operating model design to integration/separation planning and management, Day 1 readiness, synergy management, organizational restructuring, country readiness, TSA (transition service agreement) management, stranded cost analysis, cloud technology strategy, IPO readiness, and more. It includes:

n Proven Methodologies: Ready-to-execute M&A playbooks, integration and separation program toolkits, and an integration / carve-out management office

n Value Capture: Benchmarks and strategies on attaining the greatest value for cost take-out and growth platforms

n Scale and Reach: Global coverage with local resources that speak the language and understand the nuances of regional business environments

n Technology: Digital and cloud platforms that are ready to deploy as an interim or long-term solution for carve-out IPO situations, as well as NewCo operations

Businesses are constantly striving to deliver higher stakeholder value, and mergers and acquisitions

(M&A) are an integral part of the growth strategy for strategic as well as financial buyers. Managing M&A

deals, however, requires rigor and discipline, particularly given the current global market conditions,

increasing cost of capital, and rising regulatory complexities.

Tata Consultancy Services (TCS) provides strategic advisory support to help companies navigate the

uncertainty involved in mergers and acquisitions. Using an outcome-based approach, TCS helps clients

put their strategies into action, and provides long-term support to manage and deliver sustained

benefits well beyond the actual deal.

Working with TCS M&A consulting, companies can transform through their acquisitions or divestures,

leveraging a proven ecosystem of practical experts, innovative methods, and technology-driven assets TMgeared for a Business 4.0 environment. This results in deals that deliver greater value faster with a more

controlled investment of time and capital.

Figure 1. Overview of TCS M&A

DigitalCore

M&APlaybooks

andBenchmarks.

Integration/Carve-out

ManagementOffice

Hosted,Pre-configured

ApplicationEnvironmentsMigration

Factories,i.e.,

Machine FirstDelivery

BusinessProcess & IT Outsourcing

Solutions

Global Scale:

Local andOffshore

Resources

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