Insights on Mergers and Acquistions
Mergers, acquisitions, and divestitures can be a vital parkway to success, but it requires more than just closing a deal. Successful businesses generate strategic programs for M&A, from target identification, to acquiring, integrating, and expanding a business, to preparing for downturns and creating possible exit strategies. Whether considering a joint venture in an emerging market, complicated domestic or multinational activity, or divesting non-core assets, the stakes are high, and you must be triumphant. As a competent, adept advisor/consultant for M&A, business valuation, and corporate revival/restructuring, this website, Insights on Mergers and Acquisitions, offers M&A advisory services and assists businesses’ management strategies to enhance corporate value and business valuation.
Critical Insights on Mergers and Acquisitions in 2020
Disruptive M&A: Are you ready to determine your future
We exist in a world of business model disruption catalysed by technological advancement and the rise of digital-native contenders. The executive locus has substantially changed to funding in future growth engines. It is no wonder that dealmaking has likewise evolved.
The rise in Scope M&A transactions
Scope deals, which we describe as deals designed to penetrate faster-growing segments or to acquire new abilities for future growth, now constitute approximately 60% of all transactions worth more than $1 billion in business valuation. Scope transactions are estimated to be at least as successful as scale deals, and those directed at acquiring new skills get ranked as the most successful amongst scope deals. This conclusion comes with discretion and is not supported by scientific research or other concrete proof points. We are beginning to understand that some of these transactions are successful, but we’re nevertheless in the initial days. In fact, in 2019, some scope deals got considerably more significant than conventional and started seeming like one-off big bets. This trend is dangerous, for the records of large, big-bet acquisitions have usually not been pleasant.
The importance of Programmatic M&A
Corporations that develop a repeatable skill for M&A through regular buyouts better all others. Notably, frequent acquirers don’t only acquire the most; they also divest the most. Scope transactions assist businesses in growing into new growth segments and combine new capabilities. Scale ventures establish leadership positions, and divestitures free the time, talent, potential, and resources locked up in non-strategic businesses. Skilled acquirers show us that performing scope deals, particularly technological abilities, needs a distinct mindset and strategy than those used for scale transactions.
- A conventional target-screening strategy within a limited industry limit is hardly sufficient in today’s context. The most competent acquirers are quickly growing more widespread market-sensing abilities to identify and pursue new technologies and business models.
- We understand that most deals falter initially, and diligence has not altered, even if the deal mix has. However, many acquirers enhance the likelihood through earlier cross-functional team engagement, longer diligence horizons, and more healthy relationship-building to know the people, culture, and expertise. After all, that’s where the value usually is.
- We are witnessing a genuine interest in acquiring new digital abilities to extend the existing business or innovate. Conventional scale integration playbooks won’t serve to seize the value in capability deals. In a notable divergence from traditional strategies, successful acquirers are driving with joint value-creation programs, not functional integration.
- Lastly, there is no way to invest in new growth engines without divesting businesses that no longer suit the expected strategic plan. Still, there is also no basis for squandering value in the process. So the most reputable companies deny without unnecessary delay and plan ahead of time to get their due share of profit.
In the volatile environment, the most successful organisations will benefit from any opportunity to establish their structural positioning in the business through preplanned M&A and divestiture activity.
About Insights on Mergers and Acquisitions
Insights on Mergers and Acquisitions provide an understanding of the M&A world and the latest updates. Insights on Mergers and Acquisitions also offer M&A advisory services to organisations confronting numerous challenges relating to M&A and offer guidance comprising all perspectives of M&A so that each business can succeed with the crucial concerns accompanying M&A.
Ramkumar Raja Chidambaram manages the website – Insights on Mergers and Acquisitions. Ram is an advisor/consultant for M&A who enables companies to increase through M&A activity and strategic alliances. As a competent advisor/consultant for M&A, he has vast experience and demonstrated expertise in analysing, structuring, and negotiating acquisitions, divestitures, joint ventures, and other strategic partnerships.
As an adviser/consultant for M&A transactions, Ram provides M&A advisory services and specialises in business cases, contract negotiation, financial valuations, integration planning, and commercial due diligence.
Services Offered in Mergers and Acquisitions
Resolving transaction issues throughout the process
Business valuation of the target business
Preparation of a pitchbook or confidential information memorandum for a seller
Providing negotiation of purchase and sale agreement and other deal-related agreements
Identification of prospective buyers and discussions with these parties
Coming with an Integration strategy and then working as part of the Integration Management Office (IMO) to realize deal synergies
Ram is a dependable, workaholic, and details-oriented individual. He will get the job done, no matter how much time it takes. He has a strong flair for research & analysis, which he translates into practical use. With a good grasp of financial services and technology, Ram is able to leverage SME expertise to solve client’s problems. I’d recommend him in any role, which requires a dedicated, result-driven professional. Good luck, Ram!
Ram is one of the most diligent and hardworking person I have come across, he is extremely good in research and analytics but what differentiates him is his ability to articulate some very strong value propositions and also his field experience in the Americas and Europe – He has been a critical part of the PE practice that we built at HCL and I wish him all the best and I’m sure he will continue to accomplish milestones after milestones in his career……