Acquisitions fail for reasons that range from lack of compelling strategic rationale to inadequate due diligence to conflicting cultures. I think many would say acquisitions fail because too much was paid for them. While overpaying is certainly a reason for failure, I would not say it is the top reason. In my experience, I have …
Tag: acquisition strategy
How to Increase Success of M&A
A recent Deloitte survey noted frequent misalignment between CFOs and company directors about the strategic rationale of M&A. The study concludes that CFOs and board members should align their M&A strategy for greater success. Naturally, I’m not surprised by these findings. The likelihood of successful acquisition would increase if all parties shared the same strategy. …
Top 5 Strategic Drivers of Oil and Gas M&A
Mergers and acquisitions in the oil and gas industry oscillated from a high of $84.8 billion in the first half of 2012 to just $51.5 billion in the first half of 2013. The total deal value for Q2 2013 was $23.6 billion, the lowest since Q3 2009. Expect a new swing given the rumors that …
Quarterbacking the Acquisition Team
With football season starting, I am reminded of the indispensable role of the quarterback. In the same way that a quarterback can lead a football team to victory, your Acquisition Coordinator should lead the Acquisition Team to a successful acquisition. The Acquisition Coordinator’s job is to manage the process and drive it forward. This key …
How to Get a “Fat Cat” to Buy Your Small Business
How do you get a large company to buy your small business? In this video interview with Matthew Lesko, I’ve shared some of my tips & tricks. In many ways, selling a company is like selling a house. My number one recommendation is to make your company easy to buy. How can you do that? …
How to find the Perfect Acquisition Target
Acquiring the right company is the key to acquisition success. Your target should fit into your company’s overall strategic vision and add value to your business. To determine what this company looks like and to find it, develop prospect criteria. Keeping in mind your business strategy, sit down with your acquisition team and write your …
In an Acquisition Process, the Buck Stops With You
As you go through the M&A process, you may find that advisors are both necessary and helpful to assist you. However, you must maintain your leadership role. I find that particularly toward the end of the acquisition process, executives imagine that they should hand the reins to a more “experienced” professional. This would be unwise. …
Kroger Acquires Harris Teeter to Attract High-end Market
Big news from the grocery sector: Kroger will buy Harris Teeter for $2.5 billion following the trend of consolidation in the grocery industry. Earlier this year, Empire Ltd, the owner of Canadian grocery chain Sobeys, bought Safeway’s Canadian business for $5.7 billion in a “game changing” deal. As the supermarket industry becomes more competitive, companies …
Why a Letter of Intent Should be Strategic
by John Dearing, Capstone Managing Director I recently read an article that listed some standard items, such as type of transaction, employment, transaction contingencies and conditions, to include in a LOI. While I don’t disagree with this “standard” list, I would prefer that the LOI address the strategic intent of the two parties. The LOI …
Facebook Says No Waze
Yesterday, we learned that Facebook’s bid for Israeli startup Waze has ended. According to reports, negotiations broke down over disagreements on moving the Waze team from Israel to Facebook’s headquarters in Menlo Park, California. Facebook was rumored to be in talks to buy Waze for $1 billion. This is a great example of why it’s …
