Smart Things to Know About Mergers and Acquisitions

Smart Things to Know About Mergers and Acquisitions is a concise, step by step account of how to conduct all the most important phases of M&A: including the strategic analysis, search process, deal-making, due diligence, integration and post-acquisition review. Illustrated with many checklists, practical pointers and real acquisition case mterial, Tony Grundy shows you all the Smart Things to Know About Mergers and Acquisitions. Chapter 1 – Introduction – Acquisitions and Growth.

• Acquisition logic and growth – the acquisition culture.
• Acquisitions strategy and business growth.
• The logic of acquisitions and routes to growth.
• Acquisitions, alliances and organic development.
• How acquisitions can add, dilute or destroy shareholder value.
• Acquisitions and shareholder value (1) – types of acquisitions.
• Acquisitions and shareholder value (2) – segmenting the value.
• The acquisition process.
• Integrating management perspectives – strategic, financial, organisational, tax, legal.
• Alternatives to acquisition – alliances and organic development.
• Divestment.
• Structure of the book.
• Summary.

Chapter 2 – The Acquisition Strategy.

• Introduction – championing the strategy.
• Strategy and objectives.
• Gap analysis – where do acquisitions fit in?
• Acquisition options.
• Strategic and financial attractiveness, implementation difficulty, uncertainty and risk, and stakeholder acceptability.
• Determining criteria – do’s and don’ts.

• Detailed evaluation – external.
• BMW and Rover case study.
• Detailed evaluation – internal.
• Summary.

Chapter 3 – Search.

• Introduction.
• Different search processes.
• Approaching your target.
• Summary.

Chapter 4 – Acquisitions – Strategic Due Diligence.

• Introduction.
• Evaluation, strategic attractiveness – the GE grid.
• Financial attractiveness.
• Evaluating implementation difficulty.
• Uncertainty and risk.
• Stakeholder acceptability.
• Summary.

Chapter 5 – Gaining the Overview – Success in Due Diligence.

• Introduction.
• Markets and marketing.
• Products and services.
• Technology and IT
• BMW and Rover case (continued).
• Operations and people.
• Manufacturing.
• Summary.

Chapter 6 – Financial Evaluation.

• Segmenting the value of an acquisition.
• Bases of valuation – earnings, assets, discounted cash flows.
• Price-earnings ratio.
• Assets backing.
• Discounted cash flows.
• Scenarios and uncertainty and risk analysis.
• Links to the negotiation process.

Chapter 7 – Managing the Deal.

• Introduction – acquisition options and bargaining power.
• Understanding deal-making agendas.
• Deal scenarios.
• Deal-making do’s and don’ts.
• Funding the acquisition.
• BMW and Rover case (continued).
• Summary.

Chapter 8 – Acquisition Integration.

• The role of the acquisition champion.

• Integration success and failure.
• Integration strategies – the alternatives.
• Communication issues and the BMW/Rover case (continued).
• Project managing integration.
• Evaluating success.
• Post acquisition learning and review.
• Summary.

Chapter 9 – The Champneys Case.

• Introduction and background.
• Acquisition integration strategy – options.
• The integration process.
• The integration plan.
• Managing the integration – the dynamics.
• Case postscript.
• Summary.

Chapter 10 – Conclusion.

• The role of acquisitions – a review.
• Diagnosis of your own skills and weaknesses.
• Acquisitions and your career.

Appendix 1.

Granada and Forte case study.

Tony Grundy is Senior Lecturer in Strategic Management at Cranfield School of Management, and Director of Cambridge Corporate Development. He has consulted with numerous companies including Barclays Bank, BP, Ford, Lex, Hewlett Packard, ICI, The Prudential, Nokia, Norwich Union and Tesco. He is also author of Smart Things to Know About Growth and several books in the ExpressExec series.

He can be contacted via a.grundy@cranfield.ac.uk or via 01494 873 934.

Smart is a breakthrough series that offers a completely new learning experience for hassled business people. The books deliver all that the fast-track executive needs to shine and perform. Each book delivers a sharp introduction to the basics as well as experiences and tips from the frontiers of the subject and the insights of the hottest gurus.

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Getting Mergers & Acquisitions right is one of the great business conundrums of our time. The potential benefits always appear crystal clear at the outset, but inevitably the all-important asset - adding value - is often lost or horribly mutated along the way.

Smart Things to Know About Mergers & Acquisitions is the perfect antidote to potential shareholder value destruction. It provides a critical path to success by fully exploring all the options for business growth, whether you are involved in mergers, acquisition, strategic alliance, organic growth or divestment. In particular you will learn about:

· Strategy & objectives - gap analysis, acquisition options, determining criteria

· Search processes - including approaching your target

· Due diligence - uncertainty and risk, stakeholder acceptability and implementation evaluation

· Managing the deal - options and bargaining power; deal scenarios and funding the activity

· Integration issues - effective communication, success evaluation, post-acquisition learning & review

The combination of practical strategies,essential case material, and breakthrough thinking of Smart Things to Know About Mergers & Acquisitions will enable you to become the M&A champion within your business, pushing through the critical drivers for personal and corporate development success.

SMART QUOTES:

"The acquisition-led approach is seductive, and it is easy for the wannabe acquirer to think that all that is necessary for success are a few ideas and the phone numbers of good firms of consultants and investment bankers. In these circumstances, everyone will want to do a deal, be it good, bad or indifferent, and at any price that can be funded. Remember that the road to hell is paved with good advisers." Richard Koch