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Mergers and Acquisitions: |
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Mergers and Acquisitions for SME’s: |
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For any Small to Medium Enterprise, having accepted the fundamental difference between a Merger and Acquisition, there are similarities in the key criteria for assessing if the outcome will succeed or fail. With Mk4 experience has taught us to bench-check the following key areas before allow our clients to set out on such a venture; |
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1. Proof of a shared vision on where their target markets are in terms of the “diffusion of innovation’, an agreement on the technological position of their industry and what role each partner should play in it. |
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2. Ability to create short-term wins for employees (career opportunities, cultural fit, work satisfaction) to retain key people. |
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3. Long-term strategic fit, providing security for customers, employees, shareholders, and business partners. We build a plan defining the forecast revenue, profit, operation costs and PBT. We help clients identify realistic achievable levels. |
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4. Identify similarities in culture and chemistry, most experts agree these are the most important elements for a successful M&A. |
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5. Geographic locations to current operations to unite people and maximize efficiencies. Where the M&A results in duplicated offices, housing sales and support teams, we help our clients evaluate cost and customer /market impacts and time frame to rationalise these. |
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In addition we define quantifiable merger/ acquisition measures such as: |
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1. The M/A should yield quantifiable benefits in terms of improved market position, market share, revenue and profit. |
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2. The targets should have products and services in growing markets. ( A note here; the old equation of one lame duck, plus one lame duck, always equals two lame ducks).
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3. Simplicity - the acquisition should not involve massive reorganization or restructuring, physical movement of people and facilities. Cost, resource and time are key criteria to measure the M&A plan. |
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Our objective is a successful, cost effective outcome |
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