Every single time you make a merger, somebody is losing his identity. And saying something different is just rubbish.
– Carlos Ghosn
Support Mergers & Acquisitions
If grow through aquisitions is one of your strategy pillar you may proceed forward but carefully.However, you have to know that during this journey there is no short cut. You really need to put basics in place from the beginning. Take it easy !
There are several reasons for an acquisition: limit competition, consolidate position on the market, portfolio diversification with new products and services, increase company market value or add new technologies. No matter what is the reason for an acquisition you need to follow several steps well identified and consolidated into an action plan with clear resources allocation including external expertise.
In summary, a company acquisition process consists of four stages: strategic clarification, potential acquisition identification, transaction and integration.
In the first stage, strategic clarification , management teams are involved in analysis and decision making process, as well.
In the second stage, potential acquisition identification , based on internal resources availability professional external services might be contracted.
During the third stage, when the transaction is concluded, the management team must identify synergy opportunities and for operational ”due diligence “it is recommended to contact external advisor. An external advisor would give confidence of special focus and expertise.
The last stage, integration of the acquired company, is critical for the success of acquisition. Development of the integration plan, follow-up for synergies and clear responsibilities assignment are equally important. Operational excellence and processes audit will make the acquisition a successful one.
Last but not least, synchronization of IT system and calibration of personal policies will make strong link for the new journey together.
If you are involved in one of the above stages of an acquisition process and need support, do not hesitate to contact us!
We are able to offer assistance for a new company acquisition in the following areas:
- Establish the business plan
- Identify synergies
- Operational “Due diligence”
- Audit of management team
- Implement the integration plan
- Implement improvement systems
- Audit of internal processes
Also, you have to remember that during integration process there is no need to apply the principal: “the winner takes it all” .
It is critical for the consolidated company evolution to incorporate rightly the new acquisition expertise and build the team with the new resources in order to achieve strategic objectives.
Otherwise, the management team would find soon that one plus one will not sum up 2!