M&A versus organic growth – what´s possible right now? by: Anna John, Partner, Mayfield Media, London, United Kingdom

1. Anna John – Mayfield Media
Driving Business Forward
M&A vs. Organic Growth

2. Introduction
• Organic growth experience
• M&A experience

3. Is M&A a shortcut to growth?
• Great theory
• Is it realistic?
• Can it be improved?

4. Is M&A still alive after the crisis?
• Our deal flow is increasing
• There was a pause at the end of 2008 when
everything stopped
• Internally financed deals are going through
and there are more parties chasing them
• More early-cycle deals
• Some companies not buying
• Some companies are unrealistic

5. What are the trends on price and deal
structures?
• Big deals stopped
• Multiples down
• More strategic and less market share focussed
• More emphasis on deferred consideration
• Deals taking longer to complete – more due
diligence
• Tougher negotiations

6. What are the golden Rules for M&A
after the crisis?
• The rules aren’t new – just more important to
follow them
• Fit/Added Value
• Partner
• Future
• Due Diligence

7. How risky is M&A?
• In an uncertain world there are risks
• You can limit them – process and due
diligence
• Post acquisition risks are the most dangerous
• Is organic growth less risky

8. What are the major challenges to
organic and acquisitive growth?
• Lines blurred between both – use of
acquisition to drive organic growth
• Flow of opportunities – mature and congested
markets
• Uncertainty and lack of knowledge in new
markets
• Too many players chasing the opportunities.

9. Anna John – Mayfield Media
Driving Business Forward
M&A vs. Organic Growth