M&A Strategies mostlymetrics.

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Strategy Example #1 Example #2

The "why"

Economies Spread overhead and serve the combined business with one back office, while creating logistical
of Scale synergies and better negotiating leverage with suppliers.

Reduce If you buy your competitors, they are not your competitors any longer. Become the only game in
Competition town by buying up all market share. Then control prices.

Expand Moving into a tangential market allows for your salesforce to cross sell and upsell new products
TAM to both your existing customers and the target’s.

Vertically Owning multiple layers of the product delivery cycle to extract value at more than one stage.
Integrate Acquisition of a supplier is backward integration. Acq. of a distributor is forward integration.

Enter a New Setting up a legal entity and cutting through bureaucratic red tape is a pain, with unique
Geo frustrations depending on what geography you are entering. Buy someone already there.

Acquire This is commonly referred to as an “acqui-hire”. In this case the employee’s skillsets are the
Talent asset, and any revenue the company generates is secondary. This is common for software devs.

Acquire a This strategy prioritizes the asset’s potential over the current company’s revenue or talent.
Rare Asset Examples include customer lists, distributor agreements, land rights and intellectual property.

Accelerate This is the “buy” outcome of the “build vs buy” decision. Many times tech firms will know what
Roadmap product they want to add to their platform, but either don’t have the time or team to execute.

Rolling up smaller companies in a fragmented industry in the same geo and consolidating them
Rollup into a large company allows the larger firm to combine revenues and operational costs.