AaronRichards helps companies improve their odds of successful M&A through an integrated, battle-tested approach that links acquisition strategy, diligence and merger integration.
The key to a successful M&A venture is the ability to leverage experienced M&A practitioners across a wide range of industries and geographies along with a proven and repeatable approach; one that companies can return to over and over again to reap substantial rewards. The five areas described below must be addressed as the foundation of any successful M&A venture.
- Corporate strategy and acquisition strategy alignment: It is very important to develop a clearly articulated corporate strategy and an M&A plan that reinforces that strategy. Strategy is a specialty practice area of AaronRichards. Therefore, we understand the types of deals that create value and those that don't.
- Deal value proposition: Successful deals are guided by a meaningful deal value proposition that is tied to a firm's growth strategy and that spells out how the deal will add value both to the target and acquiring company.
- Strategic due diligence: Strong due diligence must address the big questions. The best acquirers investigate targets with an understanding of what's really important, identifying the key sources of ongoing value and knowing when a company's value has been artificially buffed up for sale. A frequent acquirer knows exactly where it can add value and is therefore able to set its own price—and to walk away if the price isn't right.
- Merger integration planning: No two integrations are the same, and companies must carefully consider aspects from culture to IT in order to realize the full value of the deal.
- Merger integration execution: Merging two companies requires rigorous follow-through on a long list of integration tasks, large and small. Doing both is hard. Part of the answer lies in a few, powerful guiding principles: tailor integration planning and execution to the deal value proposition; integrate where it matters; and act with deliberate speed.
AronRichards' mergers and acquisitions consultants help companies build and execute on their own repeatable models for M&A. We also apply our expertise to guide companies and management teams that are deciding where to grow and shed through joint ventures and alliances or divestitures and separations.
Our work is continually informed by the latest M&A analyses and insights which ensure that our teams and clients have access to information and conclusions about how the best acquirers succeed.
The primary purpose of M&A is not to grow big fast, but for companies to do what they do better. We offer clients a disciplined approach to deal making and M&A end-to-end support. We bring our expertise to all elements of the deal value chain, including:
- M&A Strategy: The question behind every deal should be: "How will buying this asset make my existing business more valuable, and how will I bring value to the asset I am buying?" We help companies build their M&A programs as a vector of growth strategy. We will work with companies to decide where to invest and where to divest in line with corporate strategy, prioritize growth opportunities and develop tailored M&A programs based on a client’s previous experience.
- Acquisition Screening: We help clients develop an investment proposition that is aligned with strategy and growth opportunities. We work to enhance deal flow by screening targets based on criteria set in the M&A acquisition strategy process and develop a road map to approach targets.
- Due Diligence & Valuation: We collaborate seamlessly with client teams to help companies make better investment decisions. We generate insights through world-class diligence to valuation, to prove or disprove the value of the deal, to realistically assess synergies, and chart the course of integration early.
- Merger integration Planning: The integration planning is pivotal in determining the foundations for a successful integration. Its objectives are mainly related to laying out plans to integrate both businesses and preventing, or at least dealing with, a plethora of issues; identify the synergies which offer the biggest gains; sequence them; set a pace for the integration; make the process as smooth as possible to curb the natural increase in suppliers/customers churn rate and employees turnover whilst carrying on the day-to-day operations of both businesses.
- Merger integration Execution: Once the integration planning is completed and the Change of Control consummated, the next step is a race against time to integrate some or all functions as much as possible whilst at a pace which will not hurt the business, the morale of both company´s employees and the objectives of the overall M&A project.
- Joint ventures and alliances: AaronRichards assists clients throughout the joint venture process: strategy development, partner selection and operating implementation. We have found that alliances go wrong most frequently due to neglect of the first stage–strategy development. Therefore, we focus disproportionately on ensuring that deals are structured correctly from the outset, with a very clear, shared vision and a solid understanding of mutual economics.
- Divestitures and Separations: AaronRichards works alongside companies to manage their portfolios and decide where to grow and where to shed. Sometimes, by thoughtfully divesting non-core assets or separating organizations, management can better focus its attention on its core business and unlock substantial shareholder value.