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ACQUISITION STRATEGIES
Acquisition Solutions
CHRIS BROWN - MANAGING DIRECTOR
07717 157 911
chris.brown@acquisition-solutions.co.uk
www.acquisition-solutions.co.uk
W
ith the current economic climate high a premium for a deal. envisaged. Companies that consistently get
driving a dramatic reduction in Acquirers are much less likely to get M&A right have spent the time and
corporate spending will M&A shareholder approval to pay a large premium resources to document their M&A processes,
continue in 2009? The answer is clearly yes – and in addition the competitive pressure to train their people and capture the learning
albeit at a much lower level than recently do so will be less. In an environment where from past acquisitions. It was just this
experienced. M&A is a natural corporate cash flow and profit improvement are approach that we took to develop and
phenomenon and happens in good times as critical, failure to deliver on the acquisition implement best practice M&A processes at
well as in bad. business case will not be tolerated. The BOC Group Plc.
The credit crunch has a number of For many companies, acquisitions are an M&A process is not just about due
important implications for M&A. The most integral part of their growth agenda, yet very diligence checklists and valuation models but
obvious is the reduced number of buyers and few have business processes to enable them also includes the range of activities involved
lower growth projections massively driving
down business valuations. Just like the house
“Companies that consistently get M&A right have spent the
seller, companies that don’t need to sell are
time and resources to document their M&A processes, train
increasingly waiting until market conditions
their people and capture the learning from past acquisitions”
improve.
The reduced availability of debt impacts
on deal structuring options and clearly cash to successfully manage mergers and in finding the right business to buy and,
will be king in 2009. As the economy acquisitions. An even smaller number of importantly, post-merger integration.
weakens, more companies will become companies can deploy employees who have a Acquisition Solutions offers a complete
distressed. While this can be a good time for thorough understanding of the M&A M&A process covering each key role, phase
companies to make cheap buys, it will be the process. This is despite well published and work stream. It includes the detailed
companies with a clear acquisition strategy, analysis that an alarmingly low number of processes, tasks, toolkits, templates, example
strong balance sheets and cash in their transactions are successful in actually documents and wisdom gained from previous
pockets that will lead in making acquisitions. delivering their stated objectives. With acquisitions. These processes can be tailored
There will also be an increase in paper-based increased levels of redundancies this risk to your company so they become a seamless
transactions and mergers as businesses seek increases. part of the way you run your business.
the cost reduction and strategic benefits of If a company lost £10 million because its
consolidation but don’t have the cash or internal control processes were poor it is Contact:
access to debt to effect an acquisition. likely that senior management jobs would be Chris Brown to discover how to improve your
at risk and the appropriate processes and M&A performance.
RATIONALE THINKING controls would be put in place. Yet when,
One of the potential benefits of the cold time after time, companies fail to successfully Our services include:
winds of the credit crunch is a much lower deliver on the acquisition business case they • Embedding best practice M&A process
incidence of deal fever. rarely implement processes to ensure success into your company
Historically, once people get involved in in the future. • M&A training
the deal, and egos are on the line, especially There are many reasons why acquisitions • Post-merger integration training
that of the acquirer; it’s difficult for the fail. Robust M&A processes however help • M&A transaction support
acquirer to acknowledge that it is paying too ensure you deliver the value originally • Interim management.
Mergers & Acquisitions 43
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