Value Protection vs Value Creation
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How do you strike the right balance between value protection and value creation following an acquisition? And how best can you prepare and plan for this during the due diligence phase?
What I have observed so far is the lack of curiosity on the side of the buyer regarding processes or any other activities beyond the scope of the acquisition that could be relevant and useful to the buyer.
We often forget that a company might be of interest for their product or know-how but that the reason behind the success might be in the processes the company is using fostering, for example, innovation in a faster and cheaper way than the buyer.First, identify “must-keep” talent—employees whose expertise and relationships are essential to maintaining stability. Verify the strength of customer and vendor contracts to prevent disruptions. Prioritize preservation of these critical factors as you pursue value creation opportunities identified in DD and M&A rationale.
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