You Too Can Execute a M&A Strategy

by Elias Mendoza

 

Comprehensive Analysis, Prioritization and Execution Strategy

Bringing together the analysis of the individual focus areas provides the leadership team a view of the probabilities and risk trade-offs between the various acquisition areas, enabling it to make more informed capital and resource allocation and prioritization decisions around M&A.

Broad Integration Principles

An M&A Strategy will also outline the basic principles and alternatives of the integration models that the Firm would utilize, based on the contemplated acquisition and investment volume, business model execution strategies, resource and assets requirements, as well as to any other characteristics of the potential target company universe.

Target Metrics Any M&A Strategy should look to define the target metrics to provide senior leadership the tools to evaluate progress, allow for course corrections and to accurately measure success periodically.

Some integration success factors include:

  • Revenues
  • Profits
  • Cost synergy
  • New customer wins
  • New sales channels
  • Customer penetration
  • Retention
  • Hiring new skills
  •  

In part 2 of this series, we’ll look at M&A Sourcing and how that impacts the M&A Process Lifecycle.

Other articles by Elias:

Acquisition What Is your Company’s Valuation?

Four Basic Principles for Raising Capital

Partnerships, Strategic and Commercial Benefits