What are the key features of a good corporate M&A process
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A corporate M&A may involve a wide range of target companies such as startup, matured companies, distressed assets etc.
What are the key features of a good and flexible/dynamic M&A process?this topic partly arise from the Polycom case study
I’m afraid there is nothing like “key features” of a good and flexible/dynamic M&A process. It’s all the matter of Top-management attitude and Execution Team. Partly this is the reason of so many unsucessful M&A deals.
A good M&A process- is Key. Follow the process and have the right key people on your PMO team to be flexible, when needed. It takes almost as long to choose the right PMO and functional teams as it does the M&A process.
I think the first step is to develop an acquisition strategy, then identify potential target companies (profit margin, location, culture adoption, customer base), search for target companies, begin acquisition planning, start valuation analytics, complete negotiations LOI agreement, begin the due diligence process, purchase and sale contracts, begin the finance strategy, and then close the acquisition, lastly begin post-merger integration process Day 1 -Day 100.
And communicate the process, where you stand in the steps- to employees to keep momentum and trust within this change management phase.
It requires knowledgeable people to define the best strategy for every case. For example dealing with a startup is quite different from dealing with matured companies. A startup might need external advisors during the M&A process and during Post Merger Integration, a consideration is to keep them on ‘arms length’ to maintain their startup mentality and not destroy value
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