Great Prairie Group’s M&A Audit is a quick check on your plans and rationale for an M&A transaction. The audit asks critical questions to evaluate areas of strength and weakness to help your team improve the success of your project. These questions include the following:
Any of these symptoms calls for a check on the M&A plan. Given the large amount of resources at play, management may want to examine the process and “look under the hood” sort of speak. This check might avert unfavorable surprises down the road.
Buy/sell the right target company at the right price.
M&A deals are exciting opportunities for business expansion aimed at improving the financial performance of the firm. Important drivers of M&As include scale economies, increased revenue or market share, cross selling, synergies, diversification, resource transfer, vertical integration, and more. They are also used to rebalance the corporate business portfolio to extract significant value.
The Challenge. It is a known fact, however, that half of M&As fail to deliver on their promise. As common as M&A activities are, they are significant as they use vast amounts of company resources and take up considerable management time. Failed M&A deals not only compromise the strategy of the firm, but they incur considerable financial losses.
Despite their performance, acquisitions remain part of corporate strategy. That is because growth through acquisition has been vital to the success of many companies operating in today’s economy. Most CEOs realize that their companies cannot succeed without making acquisitions. Not every company can win market share away, particularly in mature industries, so acquisitions fill in the gap. Acquiring is much faster than organic growth, and speed is unquestionably essential in today’s economy.
M&A strategy goes a long way to improve the odds of success of the deal. M&A strategy concerns aligning the firm’s strategic goals with the process of generating M&A transactions. The core logic is that transactions should be conducted only if they improve the strategic position of the investing firm. M&A strategy probes the strategic rationale and the validity of the transaction. What we do for our client