The M&A processes that an investor group follows directly contribute to the success rate of its deals. As companies manage their merger and acquisition processes internally, it is critical to have the right team for the acquihire. Teams need to be skilled at screening and sourcing target companies, integrating acquired businesses and carrying out due diligence. They also need to have the structure, size and credibility as well as accumulated experience to benefit the acquihire process.
Striking The Right Balance
Deal teams need to have members with essential skills. Consider the IBID acquisitions team which strikes just the right balance, for understanding the importance of this. Less capacity or over-inflated teams can be a major obstacle to effective deal making. The company’s capacity to capture value from the deals matters.
As the IBID acquisitions team has the skill and capabilities to support deal activities, and focuses on integrating the acquihired company, the transaction is smooth and seamless for the David Barzilay group. What matters most is having the right diversity and capacities for the merger and acquisition team to handle any challenge. The demands from the deal envisioned, the kind of leader roles played by the team, and the working association it needs to have with corporate centers and the business units should be focused on.
Meeting Strategy Demands
A merger and acquisition team can support the investor’s deal oriented objectives, when the latter flow from a well defined corporate merger and acquisition strategy. This lays the foundation for the type and range of deals that need to be clinched. Establishing a level of skills and activities required for the pipeline of potential M&A deals under negotiation, valuation, screening and closure is important. With growing competition, and massive volume M&A strategy formulation, screening multiple deals has become essential. Estimates state that companies seeking to seal 5-10 deals need to screen as high as 150 in number!
Companies need to size their merger and acquisition team based on certain skills and capabilities for not just due diligence, but managing all aspects and stages of the deal. This fosters a team that is narrowly focused, too rigidly staffed or lacks important competencies to address deal tasks or types.
While due diligence is a core part of the merger and acquisition processes, there’s much more to the full story. Aspects such as how large the focus of scanning should be, the nature of companies sourced and how these will undergo integration are equally vital, while focusing on creating the perfect deal team. The IBID acquisitions team studies the entire acquihire process from the valuation to the integration and guides portfolio companies for unlocking their potential.
Deploying a Team With Clear Roles
Deploying a team that is problematic, large or has no clear roles or responsibilities can come in the way of skillful deal execution. Starting out on ambitious growth programs without a skilled merger and acquisition team in place can prove fatal. Skilled merger and acquisition teams manage the range of deals envisioned with experience and knowledge. Judging the capabilities of the team to evaluate, integrate as well as source different deals is equally important. Mismanagement, lack of strategic focus and ambiguous priorities can be an obstacle. Merger and acquisition teams need to have the foresight to understand if the portfolio company has the potential to fulfill the mission of the investor group.
A Holistic Viewpoint
A comprehensive and holistic perspective of what is required to execute the merger and acquisition program in a successful way is an added advantage. The IBID acquisitions team focuses on seeing the big picture at every stage of the acquihire deal. Experienced, smart and centrally organized, the team wields enough prowess for defending deal rationales, gaming the strategy or changing the company’s financial fundamental structure. Diligence requires involvement. Handling post-deal integration is crucial too. The team comes with dedicated professionals and an in-house support unit to make the process easier.
Acquisitions That Fit Into the Business
A sourcing process that is well structured needs to be in place to identify suitable target companies ahead of due diligence. The dedicated team offers expertise to define attributes of a preferred acquihire target at the IBID Group. The IBID acquisitions team takes every aspect into account from size, to business models, competitive positioning, footprint or economies. Integration efforts can also vary based on the nature of the integration process. Acquisitions need to fit into the larger business goals and investor philosophy.
For the David Barzilay led IBID Group, the key motivation for an acquhire is to bring about innovation. Candidates for a potential acquisition come into consideration only when they showcase their immense potential and capacity for winning moves in a competitive iGaming industry. With dedicated and skilled integration managers in place, the consistency of the post-deal integration is assured.
Judging the External Factors
Whether it’s huge market shifts, industry complexity or industry fragmentation, the merger and acquisition approach followed and the skills of the team must be considered. The more wide and diverse the industry, the more effort needs to go into sourcing and screening. Information paucity is one of the challenges of a merger and acquisition process, which is ironical considering that we are in the age of Big Data.
Handling market intelligence skillfully, the IBID expansion team focuses on the right information, using its wide experience and in-depth, intuitive comprehension of the industry to review, assess and evaluate opportunities. When deal making needs to be understood in its complexity, the focus should be on market intelligence. M&A team members must have the depth of and industry based expertise, not just functional skills. In consolidated industries with fewer strategic opportunities, a project based approach works best.
Without clarity, the M&A deal team will kill all negotiations instead of sealing the contract. Tension and lack of clarity can come in the way of success. Ill defined roles, combative relationships with business departments and ambiguity when it comes to strategy undermines the team’s impact. The understanding and interaction between the strategy group and the merger and acquisition team is of vital importance. Encouraging open communication and sourcing market knowledge of competitor strategies is exactly why the IBID Group leads the way, when it comes to iGaming merger and acquisition deals.