8 M&A Priorities

Priority 1: Market opportunity validation

  • How are we, as a combined company, positioned in our existing markets, and how can we sustain our differentiated capabilities to sustain our growth?
  • What new opportunities are available to pursue as a result of the deal, and which of them have the highest growth potential?
  • How will our target markets shift as a result of this merger or acquisition?

Priority 2: Go-to-market … [ Read more ]

What Are Your PMI Success Chances?

The following questions can serve as a starting point for those contemplating integration in the wake of a merger. If your leadership team can answer all nine questions concerning your next PMI transaction, that bodes well. If there are gaps in your company’s responses, or some grey areas, then the prospects for a successful PMI may well be reduced. And an abundance of blanks on … [ Read more ]

Questions to Help Build an Effective M&A Organization

To tailor the design of a best-in-class M&A function, companies should answer five critical questions:

  1. What is the M&A function’s role in the company? Does it reactively support ad-hoc decisions or proactively shape corporate strategy?
  2. What expected value and volume of deals do we need to realize in the next three to five years?
  3. Do we want to concentrate expertise on the M&A team or spread it

… [ Read more ]

3 Buying vs. Building Questions

Three essential questions can help companies determine when buying rather than building makes sense for them:

  1. Does someone else have a capability that would enhance your business? There are many different kinds of capabilities-technologies, sales channels, operations in particular geographic areas and so forth. If no one else has the capabilities you need to strengthen or adapt your business, you obviously have to grow them yourself.

… [ Read more ]

M&A Capabilities Fit Questions

  • What is unique about the target company´s capabilities system? How does this company create value for customers?
  • How does the acquired company´s capabilities system differ from our own?
  • If we are buying the company for its product and service portfolio (a leverage deal), are we sure that those products and services will thrive within our current capabilities system?
  • If we are acquiring the target company for its capabilities

… [ Read more ]

Should Sales Forces be Combined?

  • Will overall sales strategy – as well as individual company and product strategies – be enhanced by an integrated sales force?
  • Is there a large overlap among potential customer segments?
  • Do companies market products to common customer segments?
  • Do the products require similar types of sales skills?
  • Does the sales force contact the same type/level of decision maker?
  • Are customers generally amenable to the merger?

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