Case Study: Acquisition

Problem & Constraints

• Company held significant share in market and was now growing at market rate
• CEO-led deals were failing at the Board level
• Management team / CEO had neither the skills nor the band-width to create and manage the acquisition process and necessary advisors (attorneys, tax, accounting, market specific consultants)
• Valuation of the company was degrading based upon growing perception that the company would not expand beyond initial market, product, technology

Engagement

• Create M&A Diversification Process [target identification, process, minimum value, key terms, negotiation methodology & strategies, thresholds thru to integration process]
• Gain buy-in from management team then Board of Directors
• Manage third party advisors and below C-level of management team keeping CEO/management & Board involved and comfortable with process, positions, and process

Engagement Actions

• Developed plans, documents, presentations, processes
• Gained management & Board support
• Executed plan with management support and participation
• Worked through trade-off scenarios to arrive at acceptable deal above walkaways

Results

• Acquired a series of companies which became 2^nd platform for company
• Valuation of business increased by nearly 4x with this successful execution.
• Now established process and educated (and expanded team) added subsequent platforms