The 4 S's of M&A Deals
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Strategy of Deal
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Synergies
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Structure of Deal
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Strategy for Integration
Strategy of Deal
Why did we buy this company?
What is the strategic business objective?
What are their strengths that can be leveraged?
Synergies
Revenue gains or cost savings targets
Time frame to reach targets
Opportunities, constraints, or risks
Structure of Deal
Deal Types
- The Rescue
- The Collaboration
- The Contested Situation
- The Raid
Types of Consideration
- Cash
- Stock
- Combination
- Understand the market's perceptions of the deal
- Understand the target company's perception of the deal
- Align communications with the structure of the deal
Strategy for Integration
- The acquired company is a stand-alone entity with no change in strategy
- The acquired company is left as a stand-alone entity, but with significant change in strategy
- The acquired company's support functions are integrated into the acquirer
- The acquired company's operations are partially integrated into the acquirer's operations
- The acquired company is totally integrated into the acquirer