How to Create Value in Merger And Acquisition

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How to Create Value in Merger and Acquisition

Our Strategy for growth and development.

Reach

•First step in creating a value is our reach- we will develop our reach in each and every sector we are presently in and that is

•Connecting East and West with Middle East i.e. From India to Turkey via Middle East. MENA and South Asia along with India and China.

•This reach will provide us huge value in terms of population and total GDP we are addressing i.e. Market Access and their needs. For example Dental hospital chain in Kuwait, along with India and Turkey and presence in Middle East will give us maximum valuation on market.

Penetration

•In each and every country we are present we try to be among top five players in terms of market share.

•We will have highest penetration among our market and as top player we can leverage this for more value.

•This will translate into highest number of presence i.e. highest number of dental hospitals serving highest number of patients

•Integration

•Vertical Integration

•Horizontal Integration

•In the value chain — as a company would like to be present at each level, there will be maximum integration, horizontally and vertically. Like in terms of Pharmaceutical business from molecule research- clinical trials – pharmaceutical manufacturing- marketing – distribution- till retail we can leverage this with hospitals, alternative medicine, medical equipment, and services.

Consolidation

•Consolidation is one of the our strategy- to become among top 3 with highest market share and penetration we will consolidate our business by acquisition, organic and in-organic growth.

•We will acquire three out of first five market leader to become top.

Synergy

•In all our operation we will create synergy of operations, volume and expertise knowledge.

•Our People is at core of our knowledge driven growth.

•We will develop synergy across boundaries,  across product line and across our business.

Invest- Turn around-Harvest

•We will invest in existing companies that, in the eyes of investors, are under performing and new projects going on stream. In this segment of the market, — see opportunities for either asset “stripping” or gradual turnaround through refocusing and re-energizing core business activity. In the former case, — will “buy it, strip it, then flip it” in an effort to produce outsize return.

•Private equity funds that are seriously engaged in strategic turnaround of acquired companies. In these cases, private investors (e.g. pension funds, insurance companies, investment banks) acting as limited partners entrust financial assets to a general partner for purposes of identifying and purchasing controlling interests in a portfolio of companies. The duration of the partnership is typically in the five- to seven-year range and considered mid-term by standards of today’s portfolios. Funds of this duration fall into the category of what may be called stewardship holdings, with the limited partner seeking companies from the outset that fit a particular sector or market cap type. In these private equity funds, the expectation (though not necessarily the result for all portfolio companies) is for the limited partner to acquire, turnaround and eventually harvest the returns through deep intervention in the structure and operations of the fund’s companies.

How we will do it– The Plan

•Defining the performance indicator.

•Developing the value creation plan for pre-closing and post closing.

•Overhauling the management plan.

•Adjusting the plan in first 100 Days

•Significantly involving senior deal partners in the first 100 days after closing.

•Proactively strengthening management teams.

•Target Market

•The Evaluation of Investment

•Doing the best deal – how to win

•Cost effective due diligence

•Capturing value post acquisition

Key Performance Indicators (KPI)

•Without analysis of Key Performance indicator we may not be able to performance. Defining KPI is the start of process and then detailed strategy will be drawn to improve these KPI.  Not only the KPI but also the growth potential and how to achieve these target are prime important. Accountability of the performance will also be defined. 

Operational Performance Indicators

Asset Performance

Financial Performance

•Restructuring and Re-engineering

•Financial Restructuring

•Re-engineering

•Mapping the Journey: Mandate for change

•Information Technology

•Governance Structure

•From Vision to Reality – The People Side

•Profiling the Future ( Re-Engineered) Organization.

•Analyzing Gap

•Managing the transition

•Support and strengthen the support organization.

The Valuable Exit

•IPO

•Trade Sale

•Sale to other funds.

•Financial Sale

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