M&A strategy seven elements

I Vision Vi i & Business strategy II Target and M&A master plan III Pre-deal
Deal

Strategic St t i fit

IV Post-deal

V Steady state

I Input t
1 2

M&A strategy t t

PMI

Leadership M&A process management

Who is leader of the M&A strategy and process? Who is control?

What are the key success drivers of the M&A strategy and how are we going to manage them?

Business

Transaction

Risk management

What do we want to achieve? Does it make sense? What is the game we want to play? How do we make it work?

What is the right price? What is the engineering? How do we manage escalating momentum? How do we close? Legal help?

How will we avoid premature death? Seize the moments? Avoid typical pitfalls and value erosion?

Stakeholders

Finance
Note: Here we define M&A strategy as the design and structure of all key aspects before and during the deal - a broader definition would also encompass the post-merger phase

Who do we need to involve, how, to which extent and when?

How will we fund it? How much debt/equity?

3
Source: icircle

What is your M&A stimuli?

What is driving your decision to buy/merge?
1. 2. 3. 4. 5. 6. 7. 8. 9 9. 10. 11. 12. 13 13. 14. Success Defeats Vulnerability Overwhelming change Beat/stop competitors Antecipating pain No pipeline Clients demand E Expansionism i i Capital markets Excess cash Vision about the future Wealth creation Legislation Re-assurance we can lead; be bolder Doubts about competitiveness; whats missing? Holding fragile position, weak to respond/command Unability to keep pace; losing ground Feeling the threat Sensing future trouble, obstacles R&D, products Protecting franchise Growing G i the th franchise f hi Whats next? Shopping Inspirational, entrepreneurial Financial Gaining edge over competition

Smart Stimuli

I our stimulus Is ti l really ll smart? t? Legitimate? L iti t ? Is M&A the best way to go? Defines mental model for strategic intent and M&A strategy
Source: icircle