Before engaging in M&A, top management and the acquisition team need to develop the acquisition strategy including:
- Transaction goals (incl. strategic alternatives) and transaction strategy
- Acquisition criteria
- Framework and constraints for transaction, e.g.
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- Maximum financing/deal size
- Ownership structure
- Commitment of top management and investor(s)
- Planning to execute
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- Time schedule
- Internal M&A team
- Advisors
- Communication strategy
- To make this a meaningful effort, it is critical to:
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- Set realistic expectations for strategic benefits and synergies
- Set up professional project management and effective coordination of the acquisition effort right from the start
Post by M. Hirt