While looking for external partners for acquisition of capabilities and resources, your company needs a practical roadmap for answering critical questions that matter. The David Barzilay management team excels at market insights and guidance, when it comes to partnerships. Whether its acquisitions, joint ventures, mergers, partnerships, alliances and wide number of business combinations, these are tools for gaining competitive advantage. Combination of markets, talent pools, assets and capabilities create value. The main strategic questions a business faces is whether it can create value and how value is captured. These ventures succeed in enhancing competitive position, if the M&A deal is able to grow the potential of the portfolio company. Driving value creation and capture are necessary conditions for business success in the M&A space.
The Importance of Value Creation
The combination, collaboration or acquihire should have the potential to create more values than the parties involved can do so alone. The David Barzilay management team stresses that there should be clarity about how to create value in the market together. Specifically, the companies need to combine to create value. The acquihire must be managed and designed to manage joint value. The partners and structures fitting the goal best is important. Additionally, the value created by the parties motivates them to contribute to the combination. Value created must be shared over time.
Getting The Best Returns
A powerful and systematic means of creating and capturing value from partnerships including combinations, management of collaborations and getting returns on efforts is essential for success. For effective execution of acquihire strategies, cues need to be heeded as well.
Identifying Potential Joint Value
The idea of creating value is essential to the David Barzilay management team, when it comes to acquihires. Businesses should have the potential to create more value than the resources generate when managed separately. The acquihire must produce synergies. The value created by the acquihire is central to the benefits it provides. If the value creation is extensive, there will be greater value addition and sharing of value.
Benefits Beyond Profits
Measuring value, according to the David Barzilay management team, exceeds profits. The benefits include not just added profits or cost efficiency but sustainable business operations as well. From cash to know-how and technology, there can be so many different kinds of value created.
Each partner perceives the benefits from a combination in a different way. Distribution of gains need to be mutual for benefits to accrue for all involved in the acquihire, not just the investor. The David Barzilay management team stresses that the focus needs to be on economic and competitive mechanisms that drive and boost joint value. This leads to fundamental strategic analysis whereby combination of resources yield added benefits. New competitive advantages generated by the acquihire must also be considered.
Creating Measurable Value
Another important factor is that business acquihires should create joint value in reality, not just theoretically. The combination has to act as an integrated operation in areas counting for value creation. Post-merger integration also contributes to the success of the acquihire, as cultures need to mesh. Acquihire success involves not just profits and financials, but people and soft factors as well.
Elements critical to creation of joint value must be managed effectively. Value creation in different parts of the value chain must be identified and integrated.
The key to a successful acquihire, according to the David Barzilay led IBID Group, is to receive value on both sides of the deal. Joint gains need to be shared in such a way that the investor as well as the portfolio company benefits from it. Parties need to contribute resources to the combination as well.
Value creation also depends on future trends in the ultra competitive environment. Balance of power between parties is a critical factor. For the David Barzilay led team of investment professionals, the portfolio company is a strategic partner in the acquihire process, with the investor showing the way for the company to gain in strength over time. Survival of alliance is risked if a nurturant and supportive environment is not provided for the company over time.
Leading the M&A World
While the pace of mergers and acquisitions is at an all time high, partnerships, alliances and collaborations are also gaining ground. Business partnerships using sharing and technology platforms depend on these as well. The core problem is not just a high number of M&A deals, but also that the valuation process is given too much emphasis. The David Barzilay team focuses on getting the deal to create significant value instead. Accurately calculating and identifying synergies of the company, and working towards cashing in on the revenue synergy opportunities, the IBID team is oriented towards pursuing growth through acquihire for risk management and beating the odds.
While assessing potential synergies, the M&A investor is skilled at assessing the potential of a company. Acquisition synergies leverage a means of expanding in logical and subtle ways that make a difference to customer receptivity and existing product definition. A mindset that offers a winning edge pays off by exercising capabilities and underutilized assets of combining companies.
The essence of a deal focuses on companies that are eager to find massive sources of revenue growth to meet shareholder expectations and investor objectives. By asking how the deal will help customers to complete their journey, the M&A strategy of the IBID Group is oriented towards using assets to create value in new ways. Augmenting the growth of the portfolio company, the focus has been on innovating and creating the perfect atmosphere for enhancing the capacity of the firm to meet challenges head on.
Through its unique acquihire model, the IBID Group focuses on post-acquisition integration. Retaining the talented management team, the IBID Group works to bring about a supportive environment for the investee firms to grow from strength to strength. Given the winning synergies of the portfolio company, the acquihire strategy really works out well, when it comes to optimal utilization of talent. Bringing in a new start and fresh prospects for growth means sharing and creating value, rather than being narrowly focused on valuation. This is what defines the winning choices made by the IBID investment group.