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The M&A Formula

Book Description

The formula that transforms the probability of success when growing your business with M&A

The M&A Formula brings together decades of research and case studies from recognised leaders into a model that anybody can use to grow their business using M&A, no matter large or small. Whether you see it as avoiding the painful failure that currently runs at a Global average of over 50%, or stacking the cards in your favour, business model-driven M&A will definitely help you win by either seizing opportunities from your competition, or failing fast – before it really hurts you.

M&As fail because the thinking surrounding them fails the rigour of scientific examination; by observing the results of conventional processes and positions, the need for new direction becomes apparent. This book presents a new set of tactics based on data from high-profile M&As, constructing a modern map of practical and business model-driven tactics that succeed in the real world. Case studies of successful deals illustrate on-the-ground implementation of a new M&A model, and tactics formulated by M&A specialists equip you with the wisdom to avoid common pitfalls and costly errors.

The M&A sector is continuing to grow, and the trend shows no sign of slowing. Business leaders need a robust, business model-driven M&A strategy for handling these high-stakes transactions, but the usual methods are no longer cutting it. This book provides a new way forward for businesses seeking smart M&A tactics, helping them to:

  • Rethink conventional M&A wisdom in light of recent failures.
  • Adopt new data-backed tactics that help ensure success.
  • Avoid litigation risk and the high cost of failures.
  • Examine practical models and illustrative high-profile case studies.

M&A failures have reached global epidemic proportions, with economic impacts to scale. Businesses around the world are in dire need of direction, and as the stakes grow, so do the potential costs of mistakes. The M&A Formula provides sound guidance and a practical new model for successful M&As in the new economy.

Table of Contents

  1. COVER
  2. TITLE PAGE
  3. ACKNOWLEDGMENTS
  4. ABOUT THE AUTHORS
  5. INTRODUCTION: THE OPPORTUNITY, THE PAIN, AND THE PROMISE
    1. Why Do M&A?
    2. What Will You Learn From This Book?
    3. Who Is This Book For?
    4. Why Was This Book Written?
    5. How Was This Book Written?
    6. Who Wrote This Book?
    7. The Professors, the Case Insights, and the Research Insights
    8. Notes
  6. Part I: The M&A Formula
    1. 1 What Is the M&A Formula?
      1. Before the M&A Formula…
      2. Should You Build or Buy?
      3. Understanding Business Model-Driven M&A
      4. Success and Failure in M&A
      5. Notes
    2. 2 Be Business Model Driven (Step 1): What Is Business Model-Driven M&A?
      1. Business Model Complementarity and Signals for Success
      2. Three Real Business Models: M&A Drivers and Complementarity Score
      3. What Are the Goldman Gates?
      4. How to Create a Target List Based on the Goldman Gates?
    3. 3 Communicative Leadership (Step 2)
      1. Lesson #1 in M&A Leadership: Drive Hard with Soft Management Tools
      2. Lesson #2 in M&A Leadership: Create a Strong Foundation for Your People
      3. Lesson #3 in M&A Leadership: Silent People Are NOT Team Players
      4. The M&A Deal Committee
      5. Intent-Based Leadership
      6. Notes
    4. 4 Take Ownership (Step 3)
      1. The M&A Playbook
      2. Governance in Corporate Processes
      3. CFA: Company-Specific M&A Engagement Letters
      4. M&A Launchpad
      5. Funding and Corporate Finance
    5. 5 Accelerating Your M&A Formula: Digitizing M&A
      1. Strengthening the Formula
      2. The M&A Dashboard
      3. Digitizing: The Human Side of M&A
      4. Now, Science Meets Business
    6. 6 Case Insights (CI) and Research Insights (RI)
      1. CI1: DSV: From Ten Trucks to €10bn
      2. CI2: RB: ‘King of OTC’ Improved Value Proposition and Client Relation as Business Model Driver in M&A
      3. CI3: Heritage Comes First at LVMH
      4. CI4: The Global Brewer: Driving M&A Growth One Beer at a Time
      5. CI5: Danaher: The Importance of Teamwork
      6. CI6: FrieslandCampina: A Merger of Equals or an Impossible Utopia?
      7. CI7: ASSA ABLOY: The Highest Total Return to Shareholders in Our Research Period (1st Jan 2007–1st Jan 2017)
      8. Notes
  7. Part II: The M&A Formula Applied
    1. 7 Next Steps
      1. M&A Reputation as a Tool for Success?
      2. Can You Build a Good M&A Reputation and Attract Sellers?
      3. Things to Avoid Internally—Bias
      4. Where to Get External Advice?
      5. FON-A-PAL—Building Your Resource Library
      6. What Do We Mean When We Talk About External Advisors?
      7. Financial Advisors/Investment Banking
      8. M&A Myth-Busting
      9. What Your Success Looks Like?
  8. INDEX FOR CASE INSIGHTS & RESEARCH INSIGHTS
  9. INDEX
  10. END USER LICENSE AGREEMENT