Mergers & Acquisitions (M&A) can be a powerful tactic by which companies can respond to new opportunities and increase shareholder value. Unfortunately there are more acquisitions that have been dilutive, rather than additive.
Despite the double-edged nature of M&A, most companies recognize the importance and benefit of developing a true core competency in acquisitions in order to remain competitive or meet growth demands. Accordingly, companies are learning to both preemptively shape the game and institute the required people, processes, and resources to be well positioned and make highly informed decisions when embarking on this front.
Back to Basics
Kaiser's experience has shown that the most successful M&A practitioners focus on developing a detailed and proprietary understanding of three basic, but critical determinants of M&A success:
- Context: How should we interpret the opportunity and the conditions by which it presents itself?
- Outcomes: What do we stand to gain or lose from the opportunity and what are the character and measure of the rewards and risks?
- Options: What can we do to uniquely realize the opportunity on terms that are attractive to our enterprise?
Deceptively simple, these questions are difficult to answer effectively when information is scarce, the ground is unfamiliar, competition is fierce, and outcomes are consequential. To mitigate these challenges, Kaiser's M&A services are centered on providing investors with objectivity, proprietary fact-based and forward looking insights, and analytical creativity needed to support decision-making across the investment lifecycle:
