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Mergers and Acquisitions

Fragmented markets with lots of small players lead to consolidation opportunties.

Reasons​

  1. Can't raise finance
  2. Limited growth
  3. Acquired

Selling yourself is harder work, lots of preparation.

  • Establish commercial relationships.
  • Want buyer to take pricing risk
  • Need an internal champion in buyer

Getting bought

  • Command better price and terms.
  • King making potential, buyer goes to main competitor
  • Accelerated growth with less risk

Deciding

  • Psychology
  • Life situation
  • Age, appetite for risk
  • Prior experience
  • New challenge

Risk Adjusted Outcome​

Risk tolerance and practicality of money.

Value * Probability = Expected Outcome

Highest expected outcome won't sell.

Need to find the most believable story to quanity expected outcome to provider value to stakeholders.

See DCF Analysis

Buy Side Profiles​

  1. Strategic Buyer - Preferred
  2. Private Equity - Don't pay as much, disciplined
  3. Another Private Company - Equity hire, scale

Pre Merger​

Due Diligence

Post Merger​

  1. Culture fit: Team integration

Process overlap.

What routine checks and balances needs to be setup to manage this process optimally?

Thoughts​

Questions

Obstacles

Opportunties

Decisions

Tools​

What are best of breed tools that match jobs to be done?

What are related concepts to master?

What useful education resources are available?