Corporate development enables companies to increase scale and growth potential through external means: mergers, acquisitions, joint ventures and alliances. Although these tactics are challenging, they are important avenues for companies to enhance their organic growth. To acquire and integrate a new business is difficult – especially at a purchase price less than its realizable operating value. We work with clients to create the elements of strategy, transaction price, and integration implementation consistent with creating value.
C3 provides its clients with support at key decision points in the corporate development process. We are able to efficiently:
- Create development strategies that identify the role and characteristics of acquisition-led growth. We use our strategy skills to evaluate markets and competitive environments. We then probe for the potential to change the dynamics of the environment through combining the client’s business with other participants. We discover advantages in cost structure, product mix, distribution channels, technology and customer mix that would add growth/profitability to increase value.
- Identify and screen acquisition targets. Consistent with strategic goals, we establish criteria to identify and screen targets. For high potential targets, we conduct detailed analyses to specify the sources of value. We then develop a full acquisition plan prior to approach and identify specific “premium recapture” opportunities that will deliver value in excess of the price paid.
- Support target due diligence efforts. We validate market opportunity, target capabilities and integration synergies. We also model and value the acquisition economics to support price negotiations and develop post-acquisition plans.
- Realize the strategy and performance objectives that drove the acquisition. We recognize that a critically short window of opportunity exists to extract value through post-acquisition implementation. We work with clients to integrate the acquired organization and assets, and realize the efficiencies embedded in the acquisition strategy. We also assist the new management team to create additional value with initiatives that build from the new platform.
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