Many leaders take a reactive rather than proactive approach when it comes to M&A. They often realize that their organic growth is stagnant and they’ve got some money they can leverage, so they decide to make an acquisition. What do they do? They go find for-sale companies or respond to those that have found them. …
Tag: strategy
Key Insights from “M&A as Competitive Advantage”
By John Dearing, Managing Director McKinsey & Company recently published an article on using M&A as a tool to give your company a competitive advantage. The article addresses some key aspects of M&A we find important at Capstone. You should develop your strategy first when approaching M&A and always have a full pipeline of acquisition …
How Acquisitions Can Help Small Businesses Grow
Did you know about 97% of acquisitions are small to mid-sized companies? Acquisition is an effective tool that can be used by companies of any size, not just those in the Fortune 500. To see how, watch my interview with Matthew Lesko. When we think of mergers and acquisitions, we often only think of mergers …
Why Do Acquisitions Fail?
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 …
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 …
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. …
How to Buy a “Not-for-Sale” Company: Sell Your Vision
As an M&A consultant, I’m often asked exactly how we persuade the owners of not-for-sale companies to sell. My years of experience speaking with owners and facilitating acquisitions makes the process easier, but the real secret is understanding owner psychology. In contacting an owner, you can’t lay out a detailed acquisition plan. The key is …
How to Grow Your Company During a Recession
American individuals and corporations are playing it safe, according to The Wall Street Journal, contributing to a slower employment rebound: “[After the recession] of the early 1990s, it took 32 months for payrolls to rebound fully. After the even milder recession of 2001, it took four years. Today, nearly four years after the end of …
Apple Borrows Cash
Yesterday, Apple sold $17 billion in debt offering to investors, the largest corporate-bond deal in history. Apple’s first debt-offering in over 20 years is part of its plan to return $100 billion to shareholders by the end of 2015. This plan is a response to pressure put on Apple to use their excess cash hoard …
