Business Objectives

M&A transactions may appear straightforward from the outside, however the relatively high rate of failure points to complications that lurk beneath the surface and may be difficult to anticipate before and nearly impossible to adjust to during the merger process. Most important to avoiding unexpected pitfalls is clear, considered, and precise knowledge of business objectives of a merger or acquisition.

Companies that undertake a merger or acquisition simply to realize cost savings or capture synergies may quickly realize to their dismay how superficial or even illusory those benefits are. Intensive analysis of specific business objectives, rather than assuming the generalizations that “synergies” has come to symbolize, allows companies to aim for definitive goals, and aiming makes the target much easier to hit.

What specific business objectives should companies strive to achieve from a M&A transaction? Steinlin Consulting is skilled at achieving positive outcomes for our M&A clients, some of the more readily achievable include:

  • Increased market share
  • Expanded technical and management capabilities
  • Reduced costs that are provable
  • Improved market position
  • Increased assets
  • Diversified corporate portfolio
  • Integration along the value chain

How these objectives apply specifically to a company requires intensive analysis and dedication of substantial organizational resources. Success also depends on able management of post-merger operations, particularly in policies designed to enable effective integration and capture value.

Information technology is an unexploited resource for many companies undertaking a M&A transaction. IT is often viewed as a tactical resource, to be deployed as needed on a day-to-day basis to keep basic company functions running smoothly. In today’s marketplace, IT is invaluable as a strategic resource best utilized to support long term business objectives, including analysis before and implementation during a M&A transaction.

Proper alignment of strategic IT resources throughout the M&A process includes participation in strategy, due diligence, post-merger integration planning, and execution. A failure in any of those single areas can frustrate expectations. Furthermore, poor IT integration can sabotage effective efforts in other areas, both from actual and opportunity costs.

No company plans a merger and acquisition to fail, but many companies fail to plan. Steinlin Consulting specializes in providing companies of all sizes experienced, professional management & strategy services needed to thoroughly evaluate business objectives before a M&A transaction, as well as manage alignment of execution with objectives during the merger aftermath. Contact us to find out how you can avoid becoming another M&A failure statistic.