The intention behind every merger or acquisition is that the deal will be an engine for growth. But it’s only through these David Barzilay strategic business insights, that the acquisition route to growth can be fully understood. The acquisition should ideally result in a combination of pipelines, people and product to take the business to new heights.
Other considerations also matter. For instance, the acquired business has to boost its presence in multiple markets and acquire a larger, more diverse customer base. In addition, a high level of talent and operational complexity and complex portfolios of products and services are also required. Formulating, tracking and isolating revenue metrics and growth is important. Cost reduction goals conflict with revenue growth opportunities leading to many M&A deal failures. Most deals to enable growth fail in their expected objective.
Harnessing the Potential of a Growth Through Acquisitions Approach
But the David Barzilay strategic business team does see growth as viable through acquisitions. What is important to remember that inking the deal is one of many steps that influences its outcome. Many see strategic growth as a goal. The David Barzilay strategic business difference is the IBID Group has the ability to consistently grow businesses faster. Research by Deloitte has found acquirers associated with high performing deals grow faster. As a serial and successful acquirer, the IBID Group has worked towards revenue impacting activities for all its portfolio companies.
According to Deloitte what distinguished the high performers was an ability to beat the odds and achieve sustained growth once the deal was inked. The David Barzilay strategic business priorities for its portfolio companies serve as important success enablers for growth associated with M&A transactions. Successful acquirers remained focused on the deal right from the early stages. With strategic priorities, the David Barzilay strategic business team excels at capturing specific opportunities created by the deal. Realising the potential of the acquisition’s target based on these strategic priorities, the IBID team spearheads initiatives that are critical to driving growth.
#1 Meeting Stakeholder Expectations
The IBID Group completes defining strategies and planning tactically well before the deal is finalised. This accelerates planning and enables execution once the deal closes. As a combined company, positioned in existing markets, the portfolio targets also sustain differentiated capabilities and spur growth. Knowing about the new opportunities available for pursuing as a consequence of the deal’s result, highest growth potentials will be realised. Based on criteria such as margin improvement or revenue growth potential, the IBID Group prioritises specific opportunities.
Potential opportunities are identified for products, customer segments, regions or market size. A disciplined approach to prioritisation and analysis forms a foundation for success of specific priority areas. This ensures planning efforts are centred on opportunities that elicit high value. Incorporating the analysis from the integration team, the focus is on whether the business case for profits can be realised. Understanding specific market segments for companies and the combined value proposition for each segment is critical to success. Specific market segments need to to be targeted in such a way that the portfolio company does not face conflicts.
#2 Evolving Market Strategies
A go-to market strategy which is coherent needs to achieve the deal’s growth objectives. Maintaining business continuity and deploying the resources and talent of companies is an efficient and effective way out. It is vital to remember that acquisitions shape the market strategy in myriad ways.
Adding the target company’s synergies to the acquirer shifts the go-to approach for market strategising in many ways. Routes to market change and direct channels need to focus on achieving higher value and more differentiated solutions. The go-to market strategies also need to translate strategic inputs into actionable growth-focused structures differentiated by segment, product, channel, sales and market. Identifying the most critical strategic insights is the goal. Doing so emphasises the deal vision’s strategic direction and structures decision making effectively.
#3 Setting Revenue Targets and Focusing on Accountability
The revenue and margin goals for an acquisition, the degree of accountability and the way post-acquisition initiatives are tracked also influences the results. Growing the right business leadership is a strategic difference between those deal-makers that succeed and those that do not. Cost savings are tracked more closely than revenue impacts generally. Savings are considered more specific and measurable. But a tactical difference between successful deals and those that fail is an in-depth tracking of all types of synergies.
#5 Are Products and Services Adding Value?
The target company needs to be supported and offer innovative products and services as part of the post-acquisition portfolio. Bundling these in terms of value proposition and price matters. Rationalising the redundant product lines and services by innovating triggers growth. The portfolio of products and services should align with the brand and go-to market strategy. The acquired company should create new solutions and engage in product improvements to leverage the value proposition of the combined entities.
#5 Building Sales
A crucial post-acquisition investment decision is how the sales organisation needs to be structured in terms of assigned coverage and territories. The right mix of channels to reach customers is the key, and critical execution decisions need to focus on the most effective deployment of sales resources. Segmenting customers is important. Deploying the right sales strategy for the correct market segment yields positive results.
#6 Refining Brand Strategies
Last but not the least is the question of what acquisitions have to do with company products and brand awareness. Brands will resonate strongly if the acquisition is a strategic one. Leveraging the power and strength of the two brands is important. So is transitioning to a new brand strategy where specific marketing campaigns target the synergies. Branding must be considered not just in terms of the corporate identity, but for the product and service too.
In fact, it is one of the first visible indicators of combined company direction, sending strong signals to customers and employees. Brand decisions need to be taken carefully. Customer touch points also need to be critically evaluated by the deal team. Growth oriented companies like the IBID Group do not remain confined to a short term focus. The essence of successful growth through acquisition is to see the big picture, and sustain long-term growth. In terms of this, the IBID Group is ahead of the market through its insightful analysis and powerful strategies.