Risks, Reps and Warranties

Managing Risk in an M&A Transaction For all their potential benefits to both buyers and sellers, acquisitions are risky. Broadly, the risk associated with any M&A transaction falls into three categories: Financial. A buyer may not understand the true financial picture and prospects of a business. Value may change materially during or shortly after the […]

Acquisition Integration

Chess board merger

Last month, we discussed how acquirers can select and work most productively with an M&A advisor. Here we conclude this buy-side article series with a look at acquisition integration. Though we typically end our formal engagement at deal closing, we always emphasize acquisition integration for two reasons: 1. Regardless of how rigorous your selection, due diligence […]

Working With an M&A Advisor

Last year’s articles have walked through the process of purchasing a company, viewed from the acquirer’s perspective. Before moving on to acquisition integration, let’s pause and look at how to work with your M&A advisor.   Role M&A advisors can provide a wide range of services. Understanding the possibilities, and identifying which services are of […]

Conducting Due Diligence

Business man presenting financial analysis

Implicit in our previous article’s discussion of the M&A pipeline is the need to move from a pool of initial candidates, often numbering 100 or more, to perhaps 1-2 good acquisitions. After high-level screens have weeded out the less attractive possibilities, and detailed analysis of publicly available information has further distilled the list, we may […]

Building a Strong Acquisition Pipeline

Pipeline over water

The last article looked at sources of target company value, and their importance based on the purpose of your acquisition. Continuing in the Search and Assessment stage of our framework, let’s now turn to the mechanics of building a strong pipeline. Figure 1. Stillwater Capital Acquisition Framework What is a pipeline? Your pipeline is a […]

The Importance of Value Drivers When Assessing Targets

Having established the importance of corporate strategy as the starting point for any deal and introduced possible acquisition types, let’s shift attention from the Strategy stage of our framework to Search and Assessment (Figure 1). What value does a potential target bring, and where do we find good quality targets? Let’s start with value   […]

Aligning Acquisitions With Corporate Strategy

Meeting

The last article shared a framework we use to guide clients through their acquisition decisions in a disciplined way, and explored the four questions every acquirer must be able to answer. Here we dig deeper into the first step in the framework, and the question of purpose, looking at the alignment of acquisitions with corporate […]

The Four Essential Questions – A Framework for Successful Acquisitions

“You don’t have to be a genius or a visionary or even a college graduate to be successful. You just need a framework and a dream.” Michael Dell (Founder, Dell Computers) Over two decades in the business, we have worked with several hundred midmarket acquirers. Their most common struggle is understanding the complex, interconnected decisions […]

Successful Acquisitions Require Successful Integration

Successful Acquisitions

The success or failure of an acquisition depends on how the target is integrated. Successful integration requires a clear understanding of what is being purchased.