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Problem: The mergers and acquisitions (M&A) division of a major international bank must
provide accurate and timely advice for its corporate customers about candidate mergers and
acquisitions as well as assess the inherent risks and long term prospects for corporate
takeovers, acquisitions and partnerships. Due to the complexity of the analysis and the
intuitive judgement needed to rank opportunities, only the most senior analysts are able
to evaluate possible M&A candidates. This constraint significantly limits the division's
revenue growth, restricts the depth and kinds of analysis it can perform, affects its
relationships with clients, inhibits the ability to train and rely on less senior
analytical skills, and increases the chances of subtle errors in its assessment of
potential candidates. The bank estimates that it loses over $40 million annually in
missed opportunities, insufficient analysis, and lack of crossover business.
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