Mergers and acquisitions as a competitive strategy
Working with mergers and acquisitions as a strategic option can offer companies a competitive advantage that improves their positioning vis-à-vis customers and suppliers and is difficult for competitors to copy
Most companies approach corporate deal making as a one-off action and mostly for a specific market opportunity, rather than as a deployment of their corporate capability to support an overall growth strategy.
Few have found a way to build and continuously improve, across all businesses, an M&A capability that consistently generates value and does better than the competition.
As a result, many bemoan how difficult M&A is and worry about statistics highlighting the failure rate of transactions rather than analysing how to develop a capability that will help them improve their market share.
In our experience, companies are more successful in M&A when they apply a two-pronged approach, consistency and professionalism.
This requires developing six business capabilities that are often neglected:
- Ability to develop long-term strategies.
- Talent to implement a growth model based on a policy of mergers and acquisitions.
- Constant monitoring of the market in order to master sector information and detect opportunities.
- Ability to rigorously analyse both the vectors that generate growth and the potential synergies that can be obtained.
- Proper management of processes to improve reputation as an acquirer.
- Develop internal and external teams committed to and motivated by the inorganic growth strategy.
M&A processes are complex and it is not always the right strategy for all companies, but those that are able to develop the described capabilities and the necessary expertise should leverage their growth through this strategy in order to enjoy a long-term competitive advantage.
Our Mergers & Acquisitions department can help you design the strategy that best suits your needs and has technological tools that can support you in the process of tracking and monitoring market opportunities.
