Merger & Acquisitions

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Acquisition Strategy- The key here is to lay out major value- creating possibilities and the compatibility of the two sets of expertise and assets, and the compatibility of cultures and people.  Without an acquisition strategy that is aligned with all other strategies, your company will find a conflict of interest. Validity inspires your company to have a vision for your acquisition that is related to corporate and business unit strategy.

Due Diligence- You have to look at the root causes and drivers, and you need to understand reality. Is there anything that is uniquely complementary? Anything that is mutually reinforcing core excellencies? No matter how good the idea is, is our leadership available and focused to pull it off? Due we have the positional or structural strength to have our best ideas included? Have we analyzed how we might be hurt by getting into unfamiliar turf? The question is how can you create value through an acquisition and keeping in mind that most breakthrough innovations have been the result of combining of two already existing ideas.

Integration- The most important factor in any acquisition is the integration plan. Without effective integration, the buyer never receives the value. In some cases it may be best not to integrate but to operate the acquired unit on a stand-alone basis. Even if the value is real, problems are bound to exist between two companies. Validity inspires an alignment of excellencies and competencies through a unified purpose that creates higher performance than either party can create alone.