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

This topic contains 1 reply, has 2 voices, and was last updated by  Kevin Ng 2 days ago.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #116622

    Thomas Teltscher
    Participant

    Hi

    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?

    #117650

    Kevin Ng
    Participant

    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

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.

Loading.. Please wait