Mergers & Acquisitions

Approaching M&A as a strategic capability can give companies a distinctive edge over competitors. Strategic and selective mergers and acquisitions can be an advantageous way for a company to add a product, geography, new skill sets, or even technology that the organization may lack to win in the marketplace. However, it’s of paramount importance that the M&A effort is a “tactic “arising from an objective or a strategy developed as part of the planning process.

One of the biggest missteps Joe has seen is when a buyer elevates the M&A to the strategic or objective level. This puts the buyer at a disadvantage as they may be tempted to buy whatever comes across their desk.

Conversely, Joe believes the buyer should consider an acquisition only if it is accretive. For example, the planning process identifies that blue widgets are the next growth area in the widget category,  you only make black widgets. You would immediately dismiss any consideration of pursuing red, green, or yellow widgets. In fact, you would ask your sales force to develop a target list of blue widget companies. As your sales force knows who they are, you don’t need a high-priced investment banker to tell you what your team has already identified.

Because you are in their “industry segment” or similar, you are familiar with the companies on your target list. You know their reputation and what they do well, etc. Imagine how this cuts down on the due diligence needed. You don’t have to worry if they are for sale “everyone’s for sale” it’s just a matter of price and terms. So, instead of considering the dogeared company that is being shopped around, you are identifying vibrant companies that you have strategically targeted.

At this point, you will need to approach the target to transform them into a seller. How do you make that transition? That’s where you need to contact Joe. Beyond making them into sellers, you will also discover:

• How to price the deal
• How to structure the deal
• How to close a recalcitrant seller

Joe believes, that when you choose your seller, you will buy the best organizations that fit your strategy and objectives instead of a lot of bad deals that might come across to your desk, where you have to figure out why they were for sale in the first place.

To learn more about his process, please request the case study or contact Joe today.