Deal sourcing is fundamental to M&A activity and represents the first stage of any deal. Put simply, it involves creating leads and managing relationships with intermediaries so as to bring about a deal.
A revolutionary shift in the M&A world took place years ago. This is when deal teams began Integration Planning prior to Day One of legal ownership of the acquired company. The concept is now recognized as a best practice in the M&A process.
Forward-thinking organizations in M&A have built a repeatable process, with proven playbooks and effective technology, to guide their deal teams. Yet still, research points to “Delays and a lack of preparedness” within Integration, to explain why only 30% of deals succeed. What other factors are eroding value in M&A? This article takes aim at one of the most prevalent bottlenecks that exist in even some of the most acquisitive companies: Mindset.Too often, organizations performing M&A are focused on “Are we going to do this deal?”. Now there is nothing inherently wrong with that line of thinking, as getting a deal to close is no small task. That mindset though has proven to be ineffective in achieving deal synergies, so we have noticed forward-thinking organizations bringing about another revolutionary shift.
A common question posed by buying/selling shareholders is “how much is the company worth” and/or “how can we make it worth more”?
If you have decided to pursue an M&A strategy, and have identified a Target, consideration must be given to Due Diligence – an in-depth fact-finding exercise helping you to understand a Target in detail and establish whether the acquisition makes Strategic, Commercial and Financial sense for your organization.
Please submit the form to watch a recording of the joint webinar brought to you by Midaxo and M&A Partners on February 16th, 2017.
In the Mergers and Acquisitions landscape there is very little margin for error, which could explain why more deals fail than meet or exceed goals. The number of factors contributing to failed acquisitions is certainly a long list, and applies to every stage of the process, from Pipeline Management through Post-Merger Integration. This post focuses on one crucial step within M&A, where organizations either identify the strategic alignment they hoped for, or realize their initial analysis overshot; Due Diligence.
Midaxo's M&A Insights Series is a compilation of diverse M&A expertise provided by a wide range of M&A professionals. Ismo Matinlauri - VP at Cargotec Corporation - shares his views on how companies should have a strategy-driven approach to M&A as part of our first installment of this Series. Ismo has over 15 years of experience with M&A from strategy development and target screening up to integration planning and execution. Recently he has moved to project sales.
This isn’t your typical “how-to” guide. At Midaxo, we talk to Heads of Corporate Development every day. We’ve found that the profile of your average Vice President of Corp Dev runs the gamut from seasoned professionals who are resistant to change, to eager, forward thinking folks who embrace change. Although no two individuals are alike, we have noticed some consistent pitfalls that all Heads of Corp Dev should avoid. These are the types of behaviors and oversights that get people fired. So, if you hate your job and want to lose it, please follow this guide:
Throughout my time working at Midaxo, I’ve spoken with hundreds of M&A professionals who work for a wide variety of companies, ranging from a 1-person deal team at $12M annual revenue all the way up to a Fortune 10 company where hundreds of people are involved across many deals per year. The challenges that all these Corporate Development teams face, however, remain the same.
Here are the top 5:
Please submit the form to watch a recording of the webinar brought to you by the Midaxo Academy on January 18th, 2017.