Your SlideShare is downloading. ×

M&A Framework for Success - short

2,843

Published on

M&A Framwork for Success by VSC Growth

M&A Framwork for Success by VSC Growth

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,843
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
57
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mergers & Acquisitions: Part 2 Practical Framework for Success - Highlights
    Steve Coote
    Director, VSC Growth
    Feb 2011
    www.vscgrowth.com.au
    Copyright © 2011. All Rights Reserved. VSC Growth
  • 2. The Market
    Globally
    • M&A transactions > US $2 trillion p.a. ($2,000,000,000,000)
    • 3. Transactions increasing post GFC
    • 4. Emerging markets now represent 30% of global volume
    Australia
    • M&A transactions > US $130 billion p.a. ($130,000,000,000)
    • 5. Current annual growth >10%
    Source - Thomson Reuters Oct 2010
  • 6. The Market - Why M&A?
    “To grow or protect shareholder value and returns”
    Source Towers Watson
  • 7. The Research
    The results of the research are presented in our:
    Mergers & Acquisitions Part 1 – 2011 Research Project
    The research has been combined with our direct experience to provide practical guidance to those involved in M&A
    Contact Steve Coote on +61 412 148428 or steve.coote@vscgrowth.com.au
    www.vscgrowth.com.au
  • 8. Framework for success - Introduction
    The Framework for Success addresses the questions arising from the research:
    • If the evidence shows such a consistently average track record, and there is so much guidance on how to do it well, then why doesn’t it change?
    • 9. If we want to improve our approach, what are the fundamental things we need to?
    • 10. What support is available?
  • Framework for success
    Surprisingly the research didn’t answer the question as to why, after 30 years, little has changed … but perhaps??
    • Incentives to grow companies outweigh the consequences of M&A failure
    • 11. Companies continue to underestimate the resources necessary for integration and the realisation of synergies
    • 12. Success relies on managing diverse and complex ranges of people and cultures… and this is not easy
    • 13. If the original M&A goals are not met, there is a tendency for 2nd best to still be considered a success
  • Framework for success - Summary
    Step 1 – Commit to improve on the status quo
    Step 2 – Understand your M&A model
    Step 3 – Recognise the 3 key success factors
    Step 4 – Create a robust strategy
    Step 5 – Develop your processes & people
    Step 6 – Execute each merger diligently
    Step 7 – Enjoy your success
  • 14. 1/3 Destroy Value
    1/3 Maintain Value
    1/3 Create Value
    Significant Value Created
    Framework for Success Step 1 – Commit to improve on the status quo
    Value Created
    Negligible Value Created
    “It is unrealistic to achieve perfection, but we should be seeking improvement”
    Value Maintained
    Improve some of these
    Maximise these
    Negligible Value Destroyed
    Eliminate these
    Value Destroyed
    Significant Value Destroyed
    “What difference would this result make to your organisation?”
    Copyright © 2011. All Rights Reserved. VSC Growth
  • 15. Framework for Success Step 2 – Understand your M&A model
    How do you currently do M&A, what works what doesn’t?
    What do others do?
    The Deal
    (Pre-Completion)
    Implementation
    (Post-Completion)
    Copyright © 2011. All Rights Reserved. VSC Growth
  • 16. “This is our M&A framework; everyone knows what they have to do”
    Framework for successStep 6 – Execute each merger diligently
  • 17. Framework for successStep 7 – Enjoy your success
    • Deliver the promise of increased shareholder value
    • 18. Celebrate what you do well
    • 19. Reduce your risks by learning from others mistakes
    • 20. Benefit from on-call experience
    • 21. Build the skills & confidence of your support team
    • 22. Uncover latent opportunities on old deals
    • 23. Focus your energies where you can create the most value
    • 24. Be prepared when the next deal comes off
    • 25. Enter the next deal with greater confidence in the outcome
  • If you would like to create more value from your growth initiatives, VSC Growth is ready to help you:
    • Mitigate the risks of bad deals
    • 26. Turn average deals into value creators
    • 27. Extract value from already completed deals
    • 28. Build your company’s success rate in M&A
    We will do this by:
    • Understanding your business
    • 29. Personal service and considered advice
    • 30. Experience and a practical approach
    • 31. Focusing on creating enduring value
    Framework for success
    Contact Steve Coote on +61 412 148428 or email your enquiry to steve.coote@
    vscgrowth.com.au
    www.vscgrowth.com.au
  • 32. Want a closer look at the Framework?
    A more detailed outline of what works is addressed in our presentation:
    Mergers & Acquisitions Part 2 - Practical Framework for Success
    The Framework combines our direct experience with the research to provide practical guidance to those involved in M&A
    Contact Steve Coote on +61 412 148428 or steve.coote@vscgrowth.com.au
    www.vscgrowth.com.au

×