Buying
When the strategic opportunities of consolidation are getting more and more frequent in the software, IT and e-business industries, numerous CEOs are tempted by external growth. This attractive idea often ends up in a trap where ill-prepared companies get stuck.
In the 1980’s, a Manhattan business bank said that they were just as proud of the M&A transactions they had not recommended as of the ones they had. It was based on statistics showing that over 50% of the transactions that had happened without a solid strategic process had been detrimental and had sometimes led straight to failure.
At ORION M&A, we believe that external growth is a way to complete a company’s global strategy in order to conquer its market.
An acquisition project has to reflect the CEO’s vision, and has to have the right advisors and methodology to come to fruition.
The acquisition plan
In order to maximize its success, the company has to prepare an acquisition plan. This plan will describe the strategic goals, the available means, and the pattern to follow.
Once the targets are identified, the strategic fit validates the sensed value for the achievement of an external growth transaction
Following the steps, ensure success
These steps take from 6 to 12 months
Respecting these steps determines the success of an acquisition transaction. Ignoring these steps is decreasing your control of risks and your executive mastering.
- Precisely describing the goals, the business expectations and the success criterias.
- Comparing the goals, expectations and criterias of the benchmarked acquisitions.
- Bringing together a team whose appraisal will be necessary in order to identify, evaluate, structure, guide and lead the due diligence and close the deal.
- Preparing the internal integration team and confirming its goals.
- Looking for a list of relevant acquisition opportunities
- Qualifying these opportunities, depending on the strategic adjustment and aligned on the goals, expectations and criterias.
- Being responsive when facing those opportunities.
- Negotiating in order to maximize the gains and minimize the risks.
- Leading strict due diligence, reviewing the strategic profile of the target, identifying and managing the risks.
- Ensuring the transaction’s financing.
- Suggesting a joint integration plan to a common team.
- Validating the whole legal documents that will be signed in order to close the deal.