Central strategy / M&A teams vs business driven M&A

This topic contains 2 replies, has 3 voices, and was last updated by  William Yong 4 months, 3 weeks ago.

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    Thomas Teltscher


    in one of the case studies, it was pointed out that the company did not have a central strategy / M&A team and that acquisitions were driven by the line managers instead. On the one hand, my experience is that such central teams can provide for strong and knowledgeable resources during an acquisition, but at the same time they can tend to be too far away from the actual business to really understand its needs. Since they also need to justify their existence, they may drive acquisitions even though they may not be the best solution. What is your view on having such central teams?


    Kevin Ng

    I think having central teams is still important, but the expertise they bring should be more broad based (i.e. financial modeling, deal structuring, valuation, negotiations). Origination and commercial deal evaluation should still be done by the business units, as they would be able to best assess the suitability of a deal, beyond the numbers


    William Yong

    Hi, i guess one of the determining factor will be the strategy & maturity of the organization. If inorganic growth is one of the driver to improve its ROI, then perhaps having a central team will bring the discipline & benefits to the whole process.

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