It would be no exaggeration to say that “strategy” is the key to success in the acquisition or sale of a company. In acquisition strategy, it is important for companies to identify the capabilities they should capture and select the right companies to acquire by pursuing strategic rather than ad hoc M&A. In sale strategy, companies need to organize the points they want to prioritize and the points they can compromise on in negotiations by clarifying their aims in selling, and identifying the right acquirer candidates.
ABeam Consulting’s acquisition and sale strategy formulation service aims to secure business growth and capture competitive advantages in line with companies’ upper level strategies in the form of corporate and business strategy. Our experienced consultants are ready to provide the right support depending on your company’s strategy.
Formulating acquisition and sale strategy
Formulating acquisition and sale strategies that contribute to attaining business growth and competitive edge in line with company-wide strategy
Background
The importance of strategic M&A for improving competitiveness
Strategic M&A is a key means of pursuing improvements to your company’s competitiveness. In particular, companies need to formulate specific M&A strategies that are coordinated with their company-wide strategy and business strategy, and execute these without friction. This enables companies to respond quickly to changes in the market environment and achieve sustainable growth.
Challenges
It is essential for companies to pursue strategic rather than ad hoc M&A
- Acquisition strategy
Incorporation of company-wide strategy and business strategy into acquisition strategy and target selection
It is essential for companies to incorporate company-wide strategy and business strategy into their acquisition strategy and target selection, so that they can identify the capabilities they need to capture and thus select the right companies to acquire - Sale strategy
Clarifying the aims in selling and selecting acquirer candidates that can achieve those aims
It is necessary for companies to clarify the value (aims in selling) they are seeking through a sale, and identify acquirer candidates that match those aims
Approach
Acquisition strategy
When selecting an acquisition strategy and potential targets, ABeam incorporates upper level strategy such as corporate and business strategy. Specifically, ABeam incorporates upper level strategy into acquisition strategy, performs target screening (drawing up shortlists and longlists), and implements approach policies and taps target companies.
Sale strategy
ABeam clarifies the aims in selling and selects acquirer candidates that help companies achieve those aims. Specifically, ABeam identifies businesses to target for sale, evaluates the expected value on them, formulates basic policies for sales, thinks through sales schemes, and screens and taps acquirer candidates.
Example approaches in acquisition strategy
Key Features
Calm and objective analysis that avoids making M&A an end in itself
M&A is one tool for achieving a company-wide growth strategy. It is not the end in itself. Whether it is to expand market share or to enter a new market, ABeam proposes the right acquisition formulation plan, having clarified where the company wants to reach through M&A. Because we put the focus on M&A that aligns with upper level strategy, if upper level strategy needs to be reconsidered, we can perform that reconstruction. Where we determine that an acquisition or sale does not match a company’s upper level strategy, and is thus disadvantageous to a client company, we also propose cancelling or revising deals.
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