In our recent article, Getting the Price Right, we outlined that there are a variety of methods that may be considered when it comes to valuing a company. Established companies (including those listed on a stock exchange such as the NYSE or FTSE) are generally easier to value, since they have a demonstrable trading history. For instance, they can be valued on the basis of their earnings or revenue with these metrics applied to an industry specific multiple and extrapolated into future projections, if required. However, valuing startup or early stage companies is a different story. Since most start-ups have little or no trading history, revenue (such companies are referred to as “pre-revenue”) and earnings, there is a clear lack of metrics to analyze – meaning traditional valuation methodologies may go out of the window.
Your Integration framework is in place. Functional leads are fully armed, and at their battle stations. Ready… Set… DAY 1!
As soon as the clock starts ticking, every second in a PMI project matters. As Kaija Katariina Erkkilä outlines in her article on PMI speed, “speed in M&A integration execution does bring value and it correlates to the success of M&A.” With the ever-decreasing timeframe in which integration leads are expected to realize synergy targets, there are few things more important than a structured and diligent integration plan. But when day one hits and Pandora’s box is open, being able to track the success of your plan in real time is crucial to hitting your targets.
Please submit the form to watch a recording of the joint webinar brought to you by Midaxo and SRS Acquiom on April 19th, 2017.
Does your company have multiple corporate development teams, located around the globe? Most of the time when I speak with companies that have distinct regional M&A teams (e.g., LATAM, APAC, EMEA, US), they keep these teams – and their pipeline of targets – in silos. Even if they are rolling the pipelines into one, it requires manual work in Excel to do so. This means that the regional stakeholders are not sharing best practices with their counterparts, and processes and tools are inconsistent from one team to the next.
M&A has historically been run using a set of disparate tools and applications. Customer relationship management software is often part of that toolset. With the introduction of purpose-built M&A software, the process from pipeline management to due diligence and post-merger integration can now be managed within a single comprehensive platform.
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.