Synergistic acquisitions are the need of the hour. Financial buyers need to choose the right market timing to purchase assets. Successful acquirers pick a genre and excel at it. Take the David Barzilay management team, for instance. The IBID Group is skilled at cashing in on growth opportunities in the iGaming sector. From screening targets to post-acquisition integration, there’s a lot that goes into making a deal a success.
Whether the deal invokes innovative operating strategies or zeroes in on corporate leaders in the game, the David Barzilay management group is focused on making acquisitions work. Acquisitions are seen as strategic partnerships rather than just a transaction. This is what differentiates the IBID Group from the others and makes it an exceptional investor.
#1 Focus on Innovative Operating Strategies
High profile LBOs have always focused on negotiation, tactics for reaching prices and unique financial structures. What sets the IBID Group apart to the fundamental change in operating practices generating positive returns for many companies. Venture capital firms like the David Barzilay management group focus not only on finding the hidden gems in the industry, but nurturing and mentoring them as well. Value creation in successful deals comes from operating performance, not just market timing, or financial leverage.
Concentrating on growing revenues rapidly, the David Barzilay management team has raked in impressive returns. The Pragmatic Play buyout by the IBID Group works on operating innovations too. The portfolio company underwent a transformation from a B2C to a B2B player as well, with new market reach and product line extensions. Innovative operating strategies permit acquirers to be successful in competitive sectors like iGaming and the David Barzilay management team is the adept at this.
#2 Zoning in on Managerial Talent
The IBID Group also believes that managerial talent is one of the most important instruments for creating value. Evaluation of current executives, looking for leaders to manage and focusing on harnessing talent, it uses the unique acquihire model. Outstanding performers can be a conduit for effective value creation, overhauling the company’s systems and dramatically lowering costs, while boosting revenue.
#3 Motivating the Team
Growth through acquisition is only possible if the investor finds and motivates the right managers. Managerial talent is essential for restructuring, growing and fixing an acquisition when net worth is on the line. Making it worthwhile for managers, motivation is initiated through equity stakes, recognition and future advancement. Carefully put together compensation schemes provide a common vocabulary for communication between owners and managers.
#4 Effective Change Management
Timing is critical when it comes to identification of opportunities in a deal. Most actions require the creation of value are taken in the period following the inking of the deal. Pushing the pace of change is vital as it disciplines managers and sharpens priorities. It provides people with a sense of challenge as well.
#5 Strengthening the Relationship
A critical difference between serial, successful acquirers and those who are not is the interaction level between stakeholders, employees and the financial investor. The IBID Group avoids bureaucratic and multi-tier structures. The focus instead is on a decentralized management structure and a flat organization where democracy prevails. Giving acquired businesses a chance to operate independently is the reason for using the acquihire model. The IBID Group is more than just an investor; it is a mentor and growth catalyst for the portfolio companies. Gatekeepers act as interfaces between the management and the front-line manager. Successful acquirers also focus on a positive relationship with employees of the acquired companies and encouraging the workforce to have an independent viewpoint.
#6 Choosing the Right Deal Team
One often unconsidered aspect of the acquisitions is the selection of deal teams. But this is undoubtedly the most important aspect. The deal team must have the experience and focus on value creation, for an acquisition to be successful. Skilled professionals with the right credentials are needed. Corporate acquirers like the IBID Group go a step further and don’t just hire, but nurture and develop their own talent as well. Corporate investment professionals on the deal team structure the acquisition, carry out the negotiations and work out accounting and legal issues. Key motivators for the deal team include decision making autonomy and value creation objectives.
#7 Evolving Capabilities
Most companies benefit from a strategic approach to acquisition. But the IBID Group moves further to consider the magnitude of change needed. The skills, structure and corporate culture are all crucial elements in their approach to deal-making. This approach is suited to companies with the right mind-frame including those that are entrepreneurial and growth oriented. Changes need to be evolutionary and the acquirer needs to bring management techniques in line with industry best practices.
Companies focusing on in-house capabilities must strengthen capabilities. This is what enables IBID Holdings to screen potential acquisitions efficiently, structure deals that are sophisticated and monitor portfolio companies effectively. Additionally, each person counts so performance-based assessments and compensation programs are individualised.
A company’s business system and culture must be considered. Single operating companies that come with centralisation or strong corporate cultures must be managed effectively. External expertise can benefit the acquirer, if the adviser’s interests align with its own. To avoid major stumbling blocks, like price overpayment, inadequate due diligence, excessively simple contracts and less post acquisition planning, the right expertise is crucial.
For effective deal-making, people are as valuable as processes. While operations and compensation systems need to be in place, it is ultimately a motivated team that can harness the true growth potential of a portfolio company. Acquisitions are a step forward for companies that are able to attract the right investor.
The IBID Group focuses on a performance culture, values technological innovation and offers great returns for the portfolio companies that enter into a partnership with them. The right investor group can make a big difference and yield positive outcomes. Make your partnership a strategic one too. Opt for the IBID Group and find out how teaming with this multi-billion dollar investment company can make your iGaming business truly game-changing.