MERGERS & ACQUISITIONS
What we do?
We focus on ensuring that deals are structured correctly, with a very clear-shared vision and solid understanding of mutual economics.
Successful integration is always a challenge being a complicated process with several stages: strategy development, partner selection, deals structure and operating implementation.
Mergers and acquisitions can deliver great value if well considered and properly executed.
In this regard we are analyzing all elements of the process in order to make this challenge more manageable and to lead to the right outcome:
- Money and Risks. Every merger or acquisition needs a well-thought-out objective explanation of how the deal enhances the company’s core strategy – “attracting new customers and channels or take competitive position on some markets.” A clear and coherent approach shows where the money is to be made and where the risks are.
- Type of action. Anyone undertaking a merger or acquisition must be certain whether:
- it is an expansion in the same or highly overlapping business to achieve cost savings and generate rapidly economic benefits (a scale deal),
- it is an expansion into a new market, product or channel to produce additional revenue (a scope deal)
- or a mix of the two types.
- Power and People. The new organization should be designed around the deal and the new vision for the combined company. The sooner you select the new leaders, the quicker you can fill in the levels below them, and the faster you can fight the flight of talent and customers and the faster you can get on with the integration.
- Priorities. Ideally, the acquiring company should begin planning the integration process even before the deal is announced. Once it is announced, there are several priorities that must be immediately addressed. Make as many of the major decisions as you can but don’t do it so fast that you lose objectivity or that you.
- Bureaucracy. Companies can create templates and processes to manage integration but too much bureaucracy and paperwork distract from the critical issues. Integration leaders should focus on the critical decisions that drive value and they should layout a decision roadmap and manage the organization to ensure that the right people make each decision at the right time with the best available information.
- Leadership. Any acquisition or merger needs a strong leader. He or she must be well „equipped” and must have the authority to make triage decisions.
- Organizational Culture. One of the biggest challenges of nearly every acquisition or merger is determining what to do about culture, because each company has its own culture.Whatever the situation, commit to the culture you want to see emerge from the integration, talk about it and put it into practice. Design compensation and benefits systems to reward the behaviors you are trying to encourage. . The company’s leaders should take every opportunity to role model the desired behaviors, and should consider carefully the fit with the new culture in making decisions about which people to keep.
- Uncertainty. Mergers and acquisitions make people on both sides of the transaction nervous. They wonder whether-and how-they will fit into the new organization so internal communication is essential.
- Monitoring. If everybody’s trying to manage both the ongoing business and the integration, nobody will do either job well. Customer needs are a priority and customer and stakeholder communication are critical.
- Review and Repeat. Once you have achieved integration, take the time to review the process: evaluate how well it worked and what you would do differently so that next time you will be able to do it better and faster-and way.
- FOCUS. Clearly articulate the financial and non-financial expected results, and by when.
- COORDINATION. Decisions timing needs to be coordinated, and everyone needs to understand the impact their actions have on others. Roadmap must clearly show who is accountable for each major decision and when that decision needs to be taken.
- ALLOCATION Roadmap must clearly show who is accountable for each major decision and when that decision needs to be taken.
- TIMING. Actively ensure that everyone is on track to make their decisions, ensures that each task force has what it needs from other task forces or from the steering group to make their decisions on time – if necessary, bring in experts to speed up team delivery and bring teams together for major decision.
Mergers and acquisitions can be a benefit to corporate growth, but practice prove that there are many ways companies can “buy growth”:
- Buying direct competitors;
- Acquire early-stage companies and take advantage of a more mature distribution network.
- Acquire companies in the same or similar industries. Then use their strengths to bolster your own.
- Merge with a like-minded business in order to gain access to new geographies or customer segments.;
- Diversify into higher margin or higher growth industries by acquiring a company in an unrelated sector.