M&A, (Acquisitions, Mergers, Partnerships, Joint Ventures, Alliances) . . . . many times are considered as “fast track” strategies to gain market share; gain new or unique technologies; build brand recognition, etc. without the long-term organic growth path where risks of missing market opportunities are high and without assurance that the demand will still be there when the product/service development comes together.
However, we all know that M&A’s historically, have had less than 50% chance of success to meet the original strategic plan objectives.iii
If you are satisfied with your M&A historical experience that is exceptional and you should keep on doing what you’re doing going forward. However, if you have had disappointing results or you are going to acquire (partner, etc.) for the first time, we have an M&A model (system) you may want to understand further.
Typical M&A high cost issues our system will help alleviate are:
• Offering too much too little . . . . just right!
• Misunderstanding the relative strengths/weaknesses of targets key personnel
• Over-valuing channel-to-market position
• Underestimating the time and management drain involved in the acquisition
• Tactics of making the process more efficient & less time consuming
• Underestimating key personnel issues
• Integrating the acquired business and complementing your own