Galvanizing your company's strategy through M&A transactions
A good transaction is the coherent implementation of a well thought out strategy.
Which questions to ask first?
- Which new resources (technologies, clients, products, …) would improve the competitive edge of your company?
- Which targets would provide you with such resources?
- Which of these potential transactions would most increase the value of your company?
- How to arbitrate between a financing in equity and in debt, without losing control of your company?
- Are the human and financial resources of your company adapted to the M&A implementation of your strategy?
- For example, is your company ready for an LBO or for raising funds?
How to answer these questions?
- By having a realistic and detailed understanding of the strengths and weaknesses of your company, which allows to define the conditions in which a transaction may create value.
- By identifying what in your competitive environment might erode your business model.
- By giving priority to transactions allowing to reinvent your competitive position.
- By integrating all the company’s know-how in the conduct of the project.
- By being at the same time demanding and curious when choosing the targets.
- By identifying the means to realize a swift ROI.
- By having a good knowledge of the financing options available on the market.
- By negotiating a financial and stockholding structure reflecting the risks as much as the opportunities.