Mergers and Acquisitions, Divestitures and Trade Sales, Strategic Alliances and Joint Ventures (read more about Buy-side and Sell-side M&A)
Acquisitions or mergers are about implementing strategies through the filling of strategic gaps. This may be achieved by implementing a growth strategy, through product and/or geographical diversification, by focusing on core business units or through consolidating manufacturing capacity. Available M&A tools to fill such gaps are e.g., acquisitions or trade sales, joint ventures/strategic alliances and mergers.
Understanding the links between basic business strategy and the use of M&A is a critical and highly underestiamted domain of knowledge in top management as well as in the M&A industry.
Learn more about buy-side M&A.
Unlike an “uncertain" acquisition process, a divestiture process is “certain” in the sense that its outcome is determined only by the seller’s own ability to locate motivated buyers and to negotiate acceptable terms.
Therefore, the keys to success in a divestiture are to understand buyer motives and synergies, locate enough buyers and their decision makers, and then negotiate and tactically handle a large enough set of parties to secure the right financial terms.
Learn more about sell-side M&A.
Other Relevant Articles
See Download Center: White Paper #2: Strategy - and the Proper Use of M&A Tools. A LinkedIn article with a shorter web version of the same white paper is available here; White Paper #5: Buy-Side M&A (mergers and acquisitions); White Paper #6: Sell-Side M&A (divestitures, trade-sales and mergers); or White Paper #7: Should You Choose Financial or Industrial Investors/Owners?; or White Paper #8: Equity Based Financing of Start-ups and High Growth Situations.
- 100+ executed acquisitions, divestitures/trade-sales and merger/de-merger/joint venture projects. Focus on managing acquisition risk, negotiations, tactics and maximizing value.
- Business unit size of US$10-250M, with deal sizes up to 2x these levels.