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Planning : Developing

Business and M & A Plan


Synergies make the ‘Target’ choice
Key Business Planning Concepts
• Business Plan : Vision & Mission Statement
• Business Strategy :
Corporate Level
Business Level
• Implementation Strategy
• Merger Acquisition Plan
• Functional Strategy
• Contingency Plan
• Real Options
STRATEGY IMPLEMENTATION
OPTIONS
BASIC OPTIONS ADVANTAGES DISADVANTAGES

Solo venture or Organic Growth) Control Capital & Time Requirement

Partner : Marketing/ Distribution Limits Capital & Expenditure Lack of Control & Threat of
alliance, Joint Venture, Licensee, Precursor to Acquisition developing a potential competitor
Franchisee

Investment (in other firms) Same as above Risks, lack of Control, Capital

Acquire or Merge Speed & Control Capital


Earnings Dilution

Swap Assets Limits use of Cash, No dilution in Searching willing partners


earnings, Limits tax liability Reaching agreement on assets to
be exchanged
Three Phases of Business & Acquisition Plan
Pre-purchase Negotiation Post Purchase

Business Plan : SWOT Refine Valuation Integration Plan

Acquisition Plan Structure Deal Closing

Search Perform Due Diligence Integration

Screen Develop Financing Plan Evaluation

First Contact Decision : Close or Walk Away Sustainment Plan


Thank you

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