Project examples

M&A Transaction, Germany & United Kingdom



Opportunity  

Our GMC team supported Deutsche Asset Management and worked alongside the Corporate M&A team in executing the separation of Abbey Life Assurance Co. (UK) to Phoenix Group. Upon deal signing full separation of the legal entity and underlying business needed to be completed in less than 3 months. This was required in order to have deal closing and thereby receive the payment of the purchase price before end of 2016.

Approach
 
GMC defined and executed a ‘Separation Roadmap’ across the front-office and infrastructure functions. We prepared a target operating model for five complex derivative transactions between DB and Abbey Life. In addition, we developed the storyline and content for senior management presentations to both Deutsche Bank and Phoenix. Over the course of the whole engagement, we organised and led regular project status meetings, connected and supported the progress of Phoenix’s integration plan by, e.g. preparing and hosting DB/ Phoenix subject matter expert meetings. 

Recommendations 

We recommended to add value by focusing on solving the key issue at hand – which was in this case achieving the full separation requirements set by Phoenix, DB’s own front-office and infrastructure functions as well as regulators in a set timeframe. Therefore we planned ahead by assessing, prioritizing and structuring required resources and tasks against the overall goal. The tight timeline was successfully achieved by focusing efforts and ensuring a high stakeholder engagement.

Impact 

Upon achieving the full separation in the requested timeframe, Deutsche Bank AG received the purchase price of EUR 1bn in 2016, which achieved a capital relief of ~ 10 basis points. Thereby GMC supported giving Deutsche Bank additional stability. Throughout and after the project, GMC support was also highly appreciated by our clients: Chief Control Office Asset Management: ”Let me echo my colleague’s thanks for you great support. It was much appreciated and made a big difference to the project.” 

Team & Learning 

“We enjoyed achieving visible results with a wide range of stakeholders ranging from Deutsche Bank and Abbey Life to Phoenix across the UK and Germany. It was a valuable experience and a lot of fun to carry responsibility in the execution of an externally communicated M&A transaction.”

Feasibility study ‘Digital Identities’, Germany


Opportunity 

The increasing digitization offers Deutsche Bank opportunities to lever its core competences, for instance identity services [‘know your customer (KYC)’] due to its role of a trusted third authority, as a trigger for business model innovation. Thus, Deutsche Bank decided to carry out a feasibility study assessing whether DB should consider introducing an identity services platform. 

Approach 

We started by identifying subject matter experts, leveraged their know-how through interviews and workshops to extract strategic requirements indispensable for a comprehensive strategic picture of the venture concept as a decision ground for DB senior management. We contributed major elements to the feasibility study including, e.g. market and competitor analysis, estimation of market potential, definition of unique selling point (USP), strategic positioning & sales concept, risk and financial assessment. 

Recommendations 

In our role as a Deutsche Bank Group Function we contributed tangible results to the study and critically challenged the concept along with our client - resulting in a strong commitment to pursue the venture. In addition, we planned a roadmap to set the stage for an implementation project considering internal and external perspectives (cooperation with other corporations). 

Impact  

We have delivered key elements to the feasibility study enabling DB’s senior management to face a decision to either stop or to pursue the implementation. Based on the feasibility study and our suggestions senior management roundtables, such as the Deutsche Bank AG Board, decided to invest and to implement the initiative - we paved the path for the implementation! Once more we drove a high priority topics quickly through the organization. The idea even persuaded other German players to cooperate with DB and to engage jointly in this venture. 

Team & Learning 

“By starting on a green field and given the great responsibility, the project offered a steep learning curve – covering aspects of project management, legal, finance, communication, marketing and more. Personally, my best experience has been the team I was working with. A strong hands-on mentality and the high responsibility sentiment of all colleagues fostered reciprocal trust within the team and enabled us to master the intense workload within a tight time schedule.”

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Last Update: 16.5.2019
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