Search engine for touristic excursions to any place in the world To start, after all, inside the strategy development realm we climb onto shoulders of thought leaders such as Drucker, Peters, Porter and Collins. Perhaps the world’s top business schools and leading consultancies apply frameworks that have been incubated from the pioneering work of the innovators. Bad strategy, misaligned M&A, and poorly executed post merger integrations fertilize the corporate turnaround industry’s bumper crop. This phenomenon is grounded within the ironic reality that it’s the turnaround professional that often mops in the work with the failed strategist, often delving in the bailout of derailed M&A. As corporate performance experts, we’ve found out that the process of developing strategy must take into account critical resource constraints-capital, talent and time; at the same time, implementing strategy need to take into mind execution leadership, communication skills and slippage. Being excellent in a choice of is rare; being excellent in is seldom, if, attained. So, let’s talk about a turnaround expert’s take a look at proper M&A strategy and execution.
Inside our opinion, the essence of corporate strategy, involving both organic and acquisition-related activities, is the search for profitable growth and sustained competitive advantage. Strategic initiatives have to have a deep idea of strengths, weaknesses, opportunities and threats, plus the balance of power within the company’s ecosystem. The company must segregate attributes which might be either ripe for value creation or susceptible to value destruction like distinctive core competencies, privileged assets, and special relationships, and also areas prone to discontinuity. Within these attributes rest potential growth pockets through “monetization” of traditional tangible assets, customer relationships, strategic real estate property, networks and details.
The company’s potential essentially pivots on both capabilities and opportunities that could be leveraged. But regaining competitive advantage by acquisitive repositioning is often a path potentially packed with mines and pitfalls. And, although acquiring an underperforming business with hidden assets and various kinds of strategic property definitely transition an organization into to untapped markets and new profitability, it’s always best to avoid purchasing a problem. In the end, a bad customers are simply a bad business. To commence an excellent strategic process, a firm must set direction by crafting its vision and mission. After the corporate identity and congruent goals are established the road could be paved the next:
First, articulate growth aspirations and understand the foundation of competition
Second, measure the lifetime stage and core competencies from the company (or the subsidiary/division in the case of conglomerates)
Third, structure an organic assessment process that evaluates markets, products, channels, services, talent and financial wherewithal
Fourth, prioritize growth opportunities which range from organic to M&A to joint ventures/partnerships-the classic “make vs. buy” matrices
Fifth, decide best places to invest where to divest
Sixth, develop an M&A program with objectives, frequency, size and timing of deals
Finally, possess a seasoned and proven team willing to integrate and realize the value.
Regarding its M&A program, a company must first observe that most inorganic initiatives usually do not yield desired shareholders returns. Given this harsh reality, it’s paramount to approach the task using a spirit of rigor.
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