Advice on the analysis of a potential merger between two leading companies in the media sector
Summary
ST strategy advised on the potential merger of two leading companies in their field.
The market for leading regional media is a classic market with well-defined audiences. A merger between two companies is a complex corporate transaction for several reasons:
- Understanding each company’s value contribution.
- Relative value of each company.
- Potential future organisational chart.
- Identification and role of each brand after the integration.
Media
Merger
Synergies
The full story
Opportunity
Once both companies expressed their interest in a potential merger, together with ST strategy they began to work on and analyse each company individually and jointly, and held working sessions with the leaders of each area.
Both companies were seeking advice at this stage of the process regarding their joint consolidation.
Recommendations
Based on the analysis carried out by ST strategy, work was done on the potential merger of both companies.
- Analysis of each company: Financial and valuation study of each company. Estimation of the relative weight in a potential merger.
- Merger synergies: Business, revenue and cost synergies expected in the short and long term from integrating both companies under the same umbrella.
- Working sessions to set the strategy and the teams: Sessions with the leaders of each area to draw up the new joint strategy. Definition of teams, brands, projects, territories and objectives, among other aspects.
* The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real.