Grow Your Business Through the M&A Pipeline
Investment Banks
Investment Banks have transaction capabilities and a far-reaching network of senior relationships that they can bring to bear to help a company execute on its objectives. With this level of connectedness in the marketplace, investment banks will certainly be in the middle of situations that are relevant to a company either directly or more tangentially.
Companies should employ a strategy vis-à-vis the investment banking community to:
- Systematically build out relationships with investment banks that spend time and have capabilities in their specific industry areas,
- Clearly communicate target objectives to investment banks and encourage the development and presentation of ideas and opportunities, and,
- Prioritize and reward strong, consistent contributors to the company
- To encourage a consistent regular dialogue and to provide the appropriate feedback to the investment banks regarding the quality of their efforts and contributions, companies should periodically assess the banks on various dimensions and prioritize and direct its relationship efforts accordingly.
Unsolicited Opportunity Processes / Roles
In the event that a company is directly contacted on an unsolicited basis and requested to consider an acquisition or investment opportunity, company Business and Corporate Development organizations should serve as the gateway between to the investment bankers, with the information regarding the opportunity and process provided.
Business and Corporate Development needs to ensure that these inbound opportunities are managed through an established transaction process, in an attempt to adhere to external timelines and dynamics typically imposed by these types of processes, while adhering to internal process and decision discipline.
The next two parts of the M&A strategy and financing will be on approach followed by execution.
Other articles by Elias:
You Too Can Execute a M&A Strategy
Acquisition What Is your Companys Valuation?
