In a recent Mckinsey & Company Article titled, “A blueprint for M&A success,” Sophia Clarke, Robert Uhlaner, and Liz Wol lay out a simple template for how executives and business owners can implement effective M&A practices. The article suggests that while mergers and acquisitions are a useful tool for growth, without a clear strategy it can be real drain on a company’s time and resources. In order to implement a successful strategy, the article suggests decision makers should be asking themselves the following questions:
“Why and where should we use M&A to achieve our corporate strategy?”
- Answering why and where forces a company to perform both a self-assessment as well as a market assessment. From this process, companies can identify key trends and opportunities in their marketplace as well as current gaps in current product lines and capabilities.
“How should we use M&A to execute our corporate strategy?”
- This question should help companies lay out a high-level business case for how specifically M&A will add value to the existing business, as well as think about post integration plans.
By spending time upfront discussing an M&A blueprint, management and owners can be much more efficient and focused on executing a proper M&A strategy that will lead to long-term value creation.
Read the Full Article Here: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/a-blueprint-for-m-and-a-success
