Mergers & Acquisitions
Is it faster and cheaper to buy something that you could, given enough time and resources, or create yourself?
During the M&A process, it is critical to understand:
Whether for scale to improve current performance by either allowing to command premium prices or to lower costs or for scope to reinvent the business model by either acquiring a disruptive business model or acquiring to decommoditize, it is critical to identify the strategic purpose of a deal to avoid a disastrous outcome.
Buyers for scale are often too optimistic about the benefits and end up paying too much for the acquisition.
It is incredibly hard to identify targets that have the potential to transform a company’s prospects, so called scope deals, let alone how much to pay for them.
The acquired model should be dissolved and deep integration completed for acquisitions done to help improve the acquirer’s current business model effectiveness.
However, if the acquisition is made for it’s disruptive business model, it should be kept intact and operated separately.
Why - identify the strategic purpose of a deal?
- Scale to improve current performance, lower costs, or command premium prices
- Scope to reinvent business model
What - is the price right?
- Scale buyers are often optimistic and overpay
- Scope deals are hard to identify, let alone price it right
How do we do integration right?
- To improve acquirer’s business model, deep integration required
- To disrupt acquirer’s business model, target remains intact and operated separately
Our Services
We have supported both corporate and private equity clients in 100+ engagements with the following M&A services.
- Craft inorganic growth strategy clearly linked to corporate strategy
- Identify gaps with corporate ambitions and opportunities for M&A
- Develop plan to pursue programmatic M&A
- Create preliminary business cases and integration approaches
- Develop screening framework and support target search exercises
- Outside-in pre-qualification due-diligence to determine back of the envelope target attractiveness
- Full-scope due diligence to help understand market trends, target’s market positioning, competitive landscape, operational performance, and synergy potential
- Define integration priorities – what needs integrating and phasing
- How to integrate – establish decision management office (DMO) and define operating principles
- Help manage change to ensure results exceed deal expectations
- Craft inorganic growth strategy clearly linked to corporate strategy
- Identify gaps with corporate ambitions and opportunities for M&A
- Develop plan to pursue programmatic M&A
- Create preliminary business cases and integration approaches
- Develop screening framework and support target search exercises
- Outside-in per-qualification due-diligence to determine back of the envelope target attractiveness
- Full-scope due diligence to help understand market trends, target’s market positioning, competitive landscape, operational performance, and synergy potential
- Define integration priorities – what needs integrating and phasing
- How to integrate – establish decision management office (DMO) and define operating principles
- Help manage change to ensure results exceed deal expectations
