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M&A – Somewhere between value creation and value destruction
There are many reasons why companies look for inorganic growth.
In some cases outstanding results have been achieved, in others, massive setbacks. So what can be done to avoid the pitfalls?
mas advises companies on their M&A strategy and implements necessary actions like acquisitions, ownership restructurings etc. We have developed an efficient and effective approach which allows to execute also smaller to dedium size transactions without spending more on fees then on value creation.
Crisp, clear and realistic target and rationale
Before launching an inorganic growth offensive, an exact analysis of the strategic positioning of the company must be made in order to have a clear picture of the target. Next, the “win-win” story needs to be defined. What’s in it for both sides? Where the underlying value of a potential transaction is not clear, the chances of a transaction is very low and the probability of disappointment later on, very high. So we challenge our clients to have a sustainable starting position with clear goals and a clear set of conditions defined. The preparation a company does before considering a transaction is the most important step, because for all the right reasons, it can lead to a company passing on a particular transaction in an inorganic growth offensive.
The success of an M&A depends more on
soft factors than anything else
From the very first contact, the slightest misstep in behavior can sour the transaction. One must consider the motivations of the players beyond just the finances. For example, an entrepreneur who has dedicated his life to building his company is thinking about far more than the money. To him, valuation must be fair, but the fate of the company has a very high importance as well. Naturally, the future role of the seller is important to discuss also. Once the strategic rationale, the future position of the target within the buyer’s group and the former owner’s position are clear, the M&A project can start – but only then. The strength and the value added of our senior team lies in helping you to see, understand and negotiate these vital issues. Our personal backgrounds enable us to help our clients to be thorough and patient; an investment returned many times.
Only a fair valuation and a fair process are sustainable
Many different types of valuation are possible. Of vital importance is that within the legal, regulatory and market framework, both parties have a perception of fairness. This is however not always possible, especially when one of the parties has an unrealistic expectation. When this occurs, only financial professionalism, change management expertise and a mastery of soft skills will lead to the desired result. Our senior, highly experience team brings the right mix of these skills to every m&a transaction.
mas im M&A PDF 276 kb
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