July 27, 2018 at 2:18 am #64623
A corporate M&A may involve a wide range of target companies such as startup, matured companies, distressed assets etc.
What are the key features of a good and flexible/dynamic M&A process?
this topic partly arise from the Polycom case studyJuly 30, 2018 at 9:58 am #64833
I’m afraid there is nothing like “key features” of a good and flexible/dynamic M&A process. It’s all the matter of Top-management attitude and Execution Team. Partly this is the reason of so many unsucessful M&A deals.August 10, 2018 at 8:54 pm #65644
A good M&A process- is Key. Follow the process and have the right key people on your PMO team to be flexible, when needed. It takes almost as long to choose the right PMO and functional teams as it does the M&A process.
I think the first step is to develop an acquisition strategy, then identify potential target companies (profit margin, location, culture adoption, customer base), search for target companies, begin acquisition planning, start valuation analytics, complete negotiations LOI agreement, begin the due diligence process, purchase and sale contracts, begin the finance strategy, and then close the acquisition, lastly begin post-merger integration process Day 1 -Day 100.
And communicate the process, where you stand in the steps- to employees to keep momentum and trust within this change management phase.August 13, 2018 at 1:17 pm #65695
It requires knowledgeable people to define the best strategy for every case. For example dealing with a startup is quite different from dealing with matured companies. A startup might need external advisors during the M&A process and during Post Merger Integration, a consideration is to keep them on ‘arms length’ to maintain their startup mentality and not destroy valueApril 18, 2020 at 11:00 pm #109496
The process should first begin with a clearly defined objective, which helps to guide the rest of the activities. In other words the objective criteria helps to create filters in the target identification aspect of the M&A process. Next would be to determine if you will use advisors or internal resource or a business broker to help filter and identify targets. Each has their pros and cons but the key will be the level and quality of due diligence to ensure that only qualifying targets are assessed. Once you have aligned on a target then a “Deal Team” would need to be assembled to conduct robust enhanced due diligence and confirmatory due diligence and once the acquisition is confirmed a go integration planning should ideally commence.
For startups the aforementioned approach would probably involve only the management team and a 1 or 2 advisors given the lack of history in the target. Acquisition of start-ups may be for the talent acquisition or patent or new strategic business line. In all cases, it will require the same general path only with greater scale based on the complexity and required skill sets to conduct the diligence and integration activities.April 19, 2020 at 1:40 pm #109506
Total second Paul’s viewpoints above… But just to add, each M&A may demand a very unique approach. It is contingent on various factors and parameters.
Importantly, it is aligned with the purpose and outcome of the initiative.
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