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M&A Strategy
Driving profitable growth and competition
Like the art of tightrope walking, merger and acquisition strategy demands skill and sequencing—with only one chance to get it right. Effectively leveraging to drive growth and improve competitive positioning requires companies to define strategic objectives and follow a clear decision path to achieve the desired results.
Make or break
Deloitte’s M&A Strategy practice works with senior executives to define how they employ M&A—in alignment with their corporate strategy—to drive profitable growth and enable them to compete effectively in their industry.
Knowing the where and how—where the company wants to compete and how it plans to win—is essential to defining an effective path and identifying strategic acquisition targets.
Deloitte provides M&A advisory services from early in the M&A life cycle (M&A Strategy, Commercial Diligence, and Operational Diligence) through to integration, as well as with disciplines such as financial advisory, IT, and tax to provide broad-based information that can inform the M&A strategy.
M&A Strategy services
Corporate strategy: To give the M&A strategy clear guidance, we can help a company refine its corporate strategy by identifying current and future growth opportunities, evaluating competitive market position, and seeking portfolio-improvement opportunities.
Inorganic growth paths: Define areas that require inorganic growth to leverage market opportunities by analyzing competitor actions and customer demands. Then we determine whether there are opportunities for horizontal and vertical integration or diversification that can improve competitive advantage.
Target profiles: Identify characteristics of a model target by identifying capabilities within the organization that need to be enhanced, as well as those the company cannot afford to have undermined through an acquisition.
Investment thesis: Evaluate alignment of the strategic rationale to the corporate strategy and growth needs by identifying deal drivers and synergies that indicate if the acquisition might be a sound investment.
Potential bottom-line benefits
- Develop executable growth strategies that create tangible value.
- Clarify and address tough choices required to execute the strategy.
- Conduct in-depth analysis to identify legitimate acquisition opportunities.
- Assess targets to gain insights needed to inform key decisions, improve pricing accuracy, and minimize uncertainty.
- Inform high-level financial projections and integration strategies to achieve realistic synergies
Unprepared companies may find themselves overpaying and often entering into an undesirable deal, putting them at risk for buyer’s remorse and unmet shareholder expectations.
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