An important plank to growing a business is to acquire other businesses or assets. A lot of time and effort and money can be expended with unsuccessful results, often from trying to achieve the unachievable. It is important to consider carefully what is required for the entity, consistent with its strategic vision, what is available and what of that is achievable.
What is it?
This is not about purchasing a new computer or office, it is about growing or rounding out the business with new operations, assets or bringing the business together with another in order to make a stronger more sustainable business going forward. Much needs to go into making the decision to proceed with a transaction. You need to determine what you actually require, how do you go about acquiring it, can it be acquired, who do you engage to assist you to do that and then managing the whole process to achieve a successful outcome and with costs managed. This transaction could be a simple asset purchase or it could be the more complex merger of entities or the takeover of an entity. Of course having achieved the transaction then the asset or business needs to be integrated with your existing business to ensure your objects are met.
Why is it important to the Board?
Apart from ensuring that the entities funds are well applied, the distraction of Management’s time and focus when handling an M & A transaction cannot be underestimated. Further, embarking on such a transaction raises the entity’s presence to others which may well make it an unintended target. It is important for the delivery of the Board’s strategic vision to ensure that its target fits within that vision and that the process is embarked upon efficiently and with success and once successful is seamlessly absorbed into the business.
What is in it for you?
Access to a wealth of experience in these processes and project management skills to assist in a successful and effective transaction.
How do we do it?
We work with the Board and Management to identify the objective and its fit within the strategic vision, to ascertain likely targets and to work through a filter process to enhance the prospect of success. We then assist the Board to select advisors to support the entity with the transaction and to then provide independent guidance to the Board throughout the pursuit of the transaction to constantly assess progress and likely success. We can then assist the Board and Management with the processes of integration necessary upon completing a successful transaction.