Identification, acquisition and integration of strategic US business target
...resulting in establishment of a market leader.
The Challenge
A review of the markets served by this engineering group concluded that growth through acquisition was the optimum route to deliver increased market share and profitability. The challenge was to identify an attractive target, negotiate a purchase at the “right “ price and to successfully integrate into the group.
The Solution
Competitor analysis identified a privately owned US company serving one of the company’s key growth segments.The target was also situated in the fastest growing, largest geographical, market; with indigenous manufacturing offering protection from currency fluctuations. Made approach and learned that company had been the subject of many previous approaches which had been rejected.
Intuitively understood the needs of the various sharholders; and gained understanding of the business and people issues to be addressed to ensure a smooth transaction The Result
The transaction was successfully negotiated and structured to meet the needs of all parties, and was completed within the planned timescales. This was followed by a well-planned and smoothly executed integration, again facilitated through the clarity of the initial business rationale for the acquisition. Key to the successful integration was clarity on reporting needs, management structure and market targeting, and sensitive deployment of the acquiring group’s personnel as gatekeepers and mentors.
“Although we were a relatively small group, the acquisition resulted in our becoming the market leader in our markets’ fastest growing segment” - Main Board Director . |
