A Case Study on Establishing an M&A Process
Astrid Malval-Beharry shares a case study on establishing a robust M&A process to ensure acquisition success.
Our client, a leading data & analytics vendor to the insurance industry, approached StratMaven to help them develop a rigorous M&A screening process that enabled fast, effective responses to sound M&A opportunities, and supported more effective research to find even better ones.
StratMaven kicked off the project by conducting a comprehensive review of industry trends, looking not just at current influencing factors, but also at what would reshape the industry in the future. The next stage was to identify specific opportunity segments. For each search direction, the results of our analysis were summarized in a scoring matrix. The matrix looked at two dimensions: the strategic fit with the Client (e.g. business model attractiveness, customer perspective, content/ technological suitability, etc.) and the segment attractiveness (e.g. market size, growth, margin potential, and competitive intensity). Segments with a high score in both dimensions were highlighted as opportunity segments. We then looked for discrete acquisition targets within these prioritized opportunity segments. Target companies were screened against a number of criteria and were further prioritized in an “Action List”, “Watch List”, and “Knockout List.” StratMaven leveraged secondary market research as well as in-depth primary interviews with knowledgeable market participants to obtain detailed information on each of these criteria.
StratMaven identified a set of strong candidates that would meet our client’s strategic objectives and whose executive leadership would likely entertain an acquisition under mutually beneficial terms. StratMaven facilitated introductions to some of the target companies’ executive teams. It’s been very rewarding to observe our client successfully execute on their M&A strategy, leveraging the analysis of StratMaven.
Access the case study, Establishing a Robust M&A Process to Ensure Acquisition Success, on StratMaven.com.