Successful acquirers begin with an investment thesis, a statement of how a particular deal will create value for the merged company. The most compelling investment thesis is one that explains why and how an acquisition stands to improve the existing core business. Remember: Merger strategy is inseparable from business strategy. Before you can create an […]
M&A—invest with a thesis… Read More »
Quick Tip Build your due diligence valuation process around two critical steps (once you have completed and vetted your investment thesis): Determine the target’s stand-alone value based on a rigorous understanding of cash flows. Your due diligence process must first establish a baseline—that is, your target’s value under “business as usual” conditions. Key: Most of
Quick Tip For a revenue officer…, the Four C’s (i.e., things to always keep your eyes on): Customers Competitors Costs Capabilities Further, keep market maps (size, growth rates), define where to compete and how to win, know industry pricing, track customer/product profitability, quantify customer loyalty, monitor your firm’s relative cost position, and make sales systems