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Strategic Capability for Superior Value Creation
The numbers are well known – most acquisitions fail to deliver their stated value. However, the reasons for these wasted opportunities to create superior value and competitive distinction are not so well known.
Why do Mergers & Acquisitions fail?
Below are some of the reasons:
M&A as a strategy is vague and unspecified
Treated as series of “projects” rather than part of an integrated strategy
Lack of a strategic focus, end up managing a series of unfocused acquisitions
M&A as a tool to purchase asset or growth without regard to creating strategic value
Exclusive focus on due diligence of financial, legal, tax and operating issues, and not validating the strategic vision
Lack of engagement of the key, multi-functional players who would deliver value, as more information is available
Sucked into the current state evaluation without regard to the future state operating models
Frozen valuation targets as the integration starts, the targets set early on when the information was unreliable or suggested by external sources, leads to expectations to the lowest common denominator without regard to synergies and opportunities
Rigid methodologies for integration where regimented processes ignore uniqueness and synergies for the sake of “efficiency”
Lack of reassessment of the value creation opportunities throughout the life cycle of the deal.
Acquisition is an important tool for growth. But buying companies without an overall strategy can lead to an operational mess. We believe a merger or an acquisition is a significant endeavor, a life event in the life of a company. Its reverberations are felt all across the ecosystems of both the acquirer and the acquiree. There are high expectations of change by the stakeholders of both the involved parties – a prime opportunity when anticipation and acceptance for change make it much easier to do it.We believe it is a colossal waste of opportunity to not leverage this energy to make significant strategic gains.
The valueideas® Difference
We believe that M&A should be a strategic capability and a competitive differentiator like R&D, Marketing etc., and as such should be a disciplined, dedicated and integral part of the overall strategy.
We strive to build both the capacity and the capabilities to create competitive differentiation through M&A by:
Developing focused M&A strategy
Building capabilities and reputation as the acquirer of choice
Identifying greater value in deals – way beyond traditional valuation
Expanding traditional due diligence to include intangibles, synergies, assets and opportunities for the combined entity
During due diligence, armed with more information, we engage key players in validating the value proposition, identify pitfalls and developing potential business models for the combined entity
Immediately after deal closure, we engage a large cross-section of people from both organizations and leverage their creative energy and collective genius to create leading edge innovative designs and solutions for the combined entity for integration
During integration and through out the life cycle, we help evaluate opportunities for further value creation and help design and execute solutions for continuously delivering greater return on investment
Deliver Superior Value
valueideas® delivers multi-dimensional value, when accumulated, that is far superior to the traditional methods deployed.
Better and faster results
Innovative and leading-edge solutions
Tremendous buy-in of a large cross-section of people
Infrastructure sustainable long-after we are gone
Faster results – reduction in time by as much as 80% to traditional methods
Significantly reduced total resource investment
Total cost is a fraction of the traditional methods
We strive to make our engagements as the one of the best experiences you've ever had