By some estimates 70% of all mergers and acquisitions fail. Yet there are some companies that have been consistently successful with their accusations. In this program we will expose you to some of the principles that underlie successful acquisitions.
First and foremost, M&A is a means to an end – the end being a modification of the existing business through the acquisition of new capabilities. These capability acquisitions can be categorized as competitive, enabling and expansionary. Mergers and acquisitions take place when a firm decides to buy these capabilities rather than develop them in the house. In order for M&A to succeed the acquiring firm has to clearly understand the additional profits it can generate with these new capabilities and the cost of acquiring and integrating these capabilities. With this insight you will find it much easier to identify the right target, decide how much to pay and plan your post-merger integration (PMI) before you sign the deal. Finally, you will learn about different categories of M&A and the generic value-creation and value capture challenges for each category. If your proposed acquisition is similar to one of these categories, you can develop a superior insight about the likelihood of success faster than other potential acquirers. This is a trait that all successful acquiring companies must develop.
- Broad categories of M&A
- Selecting the target
- Strategy behind the deal
- Target criteria
- Evaluating value and risk
- Financing and its impact on valuation
- The courting process
- Planning the post-merger integration (PMI) strategy
- What to integrate
- Sequence and speed
- Targeting quick wins
As a result of attending this program, participants will:
- Manage a merger or acquisition to maximize the return on investment
- Identify more precisely what they are acquiring, including why and what economic benefits they can expect from the acquisition or merger
- Relate the merger or acquisition to overall valuation and the enhancement of shareholder value for the acquirer
- Create a post-merger integration architecture to guide the company
Who Should Attend
Executives and managers who have direct or indirect responsibility for corporate development activities, as well as functional level managers involved in identifying and integrating acquisitions.