To begin with, after all, from the strategy development realm we get up on the shoulders of thought leaders for example Drucker, Peters, Porter and Collins. Even world’s top business schools and leading consultancies apply frameworks which are incubated through the pioneering work of these innovators. Bad strategy, misaligned M&A, and poorly executed post merger integrations fertilize the business turnaround industry’s bumper crop. This phenomenon is grounded in the ironic reality that it’s the turnaround professional that usually mops inside the work of the failed strategist, often delving to the bailout of derailed M&A. As corporate performance experts, we now have learned that the entire process of developing strategy must be the cause of critical resource constraints-capital, talent and time; concurrently, implementing strategy need to take into mind execution leadership, communication skills and slippage. Being excellent in a choice of is rare; being excellent in both is seldom, if ever, attained. So, let’s discuss a turnaround expert’s view of proper M&A strategy and execution.

Inside our opinion, the essence of corporate strategy, involving both organic and acquisition-related activities, will be the hunt for profitable growth and sustained competitive advantage. Strategic initiatives require a deep idea of strengths, weaknesses, opportunities and threats, and also the balance of power inside the company’s ecosystem. The company must segregate attributes which are either ripe for value creation or vulnerable to value destruction including distinctive core competencies, privileged assets, and special relationships, as well as areas susceptible to discontinuity. Within these attributes rest potential growth pockets through “monetization” of traditional tangible assets, customer relationships, strategic property, networks and details.

The business’s potential essentially pivots for both capabilities and opportunities that can be leveraged. But regaining competitive advantage by acquisitive repositioning is really a path potentially full of mines and pitfalls. And, although acquiring an underperforming business with hidden assets and various varieties of strategic real estate property can indeed transition a company into to untapped markets and new profitability, it’s always best to avoid getting a problem. In fact, a bad business is just a bad business. To commence an effective strategic process, a business must set direction by crafting its vision and mission. As soon as the corporate identity and congruent goals are in place the road may be paved the following:

First, articulate growth aspirations and view the first step toward competition
Second, measure the lifetime stage and core competencies with the company (or even the subsidiary/division in the case of conglomerates)
Third, structure a natural assessment procedure that evaluates markets, products, channels, services, talent and financial wherewithal
Fourth, prioritize growth opportunities starting from organic to M&A to joint ventures/partnerships-the classic “make vs. buy” matrices
Fifth, decide where to invest where to divest
Sixth, develop an M&A program with objectives, frequency, size and timing of deals
Finally, possess a seasoned and proven team willing to integrate and realize the value.

Regarding its M&A program, a corporation must first observe that most inorganic initiatives usually do not yield desired shareholders returns. With all this harsh reality, it is paramount to approach the method with a spirit of rigor.

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