Research consistently shows that M&A transactions fail at a rate of 50% to 80%. As one observer succinctly noted, the odds of being successful are not much better than tossing a coin. This is bad enough for large corporations with sufficient resources to weather the storm, but it can be devastating for small to mid-size […]
As I mentioned in a previous article, the failure rate for M&A transactions ranges from 50 to 80 percent. However, you can greatly increase your chances for success by targeting your efforts. Before you begin negotiating for a potential acquisition, be sure to figure out what you want to buy and why you want to […]
Conducting due diligence on a potential acquisition target has two main goals: Confirm that the proposed acquisition is indeed the right company to buy and that the price you are offering is appropriate. Ensure that there are no issues that would cause you to abandon the proposed transaction, such as disputes over ownership of key […]
Over the past 20 years I have witnessed a wide range of negotiation tactics. At one end of the spectrum are the business people who are so desperate to get a deal done that they will agree to almost anything, and at the other end are the ones whose overriding motive is to drive the […]
Having established a strong and vibrant brand in your home market, you’ve been exploring the possibility of international expansion. Although you lack the resources to enter a promising foreign market on your own, an opportunity to do a joint venture (JV) with a strong local company entices you to explore further. The local company is […]
Preparing a business plan can be a challenging and time-consuming process. However, it is worth the effort because when done correctly it achieves three key objectives: It forces you to confront some hard and perhaps uncomfortable facts about your business. It aligns the senior management team regarding actions that must be taken to reach the […]
For anyone who has ever worked for a large multinational corporation, the following scenario will be all too familiar. A project requiring substantial investment is presented for review. The project team turns up with a 100-page presentation plus supporting spreadsheet models to justify their proposal. The presentation includes sections covering Sales, Marketing, Operations, Finance, and […]