Executing Effective M&A

Executing Effective M&A

Recently I read an interesting article from Merrill Datasite about Executing Effective M&A. The article was a good reminder about the importance of the M&A process and how preparation in delivering successful M&A is vital. Good tools including an active target selection process, virtual data room, right timing; they are all important ingredients of a palatable and easily digestible acquisition. However, no matter how good the tools are, they won’t work effectively if there is no framework for using them – in short, a strategy.

Successful M&A starts from a well thought through strategy and markets will easily detect – and reward – companies when they demonstrate that the acquisition is linked with their corporate and business unit strategy. This is not just about having the right vision and plan that will deliver high performance; the process of strategy development itself is equally important. Getting that right will ensure that management teams ‘buy in’ to the strategy rather than are merely ‘informed’ about the strategy from head office. When management teams participate in strategy development they understand why alternative routes were not adopted and the key levers that will help them achieve the goals.

Once management thinking has been collected then companies should triangulate the thinking with outside data and experience. The experience of non-executive board members is also vital to ensure experienced thinking is baked into the strategy. It’s why at BTD we run workshops using ‘Horizons of Growth’ methodology to flesh out management thinking on business growth.

So while the ‘art’ of the deal is a must in ensuring success, the artist’s clarity of mind is the necessary first step and the foundation of all that follows.

Divya Modi-Sarda, BTD pre-deal specialist