What are the key components of mergers and acquisitions? According to Wikipedia, Mergers, and Acquisitions are, “transactions in which the ownership of companies other business organizations or their operating units are transferred or combined. As an aspect of strategic management, M&A can allow enterprises to grow, shrink, and change the nature of their business or competitive position.

Did you know, our M&A consultants work with companies to make mergers and acquisitions succeed and deliver superior returns by developing a repeatable model that is tied to the company’s strategy and customized to its experience. We help companies position themselves to take advantage of the global and domestic trends and competitor successes that are placing increasing pressure on them to grow.

Our analysis and years of experience indicate that M&A creates the most value when it is targeted and in line with a clear acquisition strategy. We have a repeatable model and institutional discipline to find, diligence and integrate companies.

The following are keys to our M&A approach along with a summary of each:

1. Identify Targets

Companies generally pursue acquisitions in three different ways. These sourcing approaches are defined as:

  • Proactive

The acquisition addresses the opportunities and challenges raised in the defined Strategy.

  • Reactive

The acquisition is made in response to an outside approach in a market that has previously been identified as attractive by the strategy development process.

  • Opportunistic

The acquisition is made in response to an outside approach in a market not previously considered as an attractive option in the strategy.

2. Due Diligence

Acquisition due diligence is the process by which you gather information about a business you are planning to acquire so that you enter into the purchase with full knowledge of all the relevant facts.

3. Facilitate The Discussion

Having a neutral third-party facilitator is essential to the process. We can ask the tough questions, we can answer the tough questions.

We believe that the gold standard of M&A is a repeatable model.  Companies that work with us and built their growth on both organic and M&A achieved higher growth than the average.

In the upcoming weeks, we will be taking a deeper look into mergers and acquisitions to help you better understand all of the pieces necessary to make them successful. If you’re curious to know please check back and if there are certain topics that you would like us to write about, please let us know!