When the IBID Group makes an acquisition, it knows how to maximize value creation in the deal, focusing on how assets and companies can be brought together to create additional shareholder value. Estimating the connection customers have with current brands and the time required to make a change, the IBID Pragmatic Solutions acquihire uses a forward looking model to accelerate merger and acquisition decision making.
Considering that the merger and acquisition model focuses on maximizing profit across an entire organization, the strength of every brand can vary across business lines and geographies. If value creation is the focus, trusting the customer and putting across evolving models rather than limited solutions ensures the investor group optimizes the brand asset architecture to get the maximum value from the deal. Research by Harvard Business Review, for example, reported that the rate of failure is generally around 70-90 percent for mergers and acquisitions.
The IBID Pragmatic Solutions acquihire has focused on offering the portfolio company a nurturing and supportive environment because to receive returns on investment, giving is a must. Value creation and sharing forms the core of the IBID Pragmatic Solutions acquisition. The secret behind success is value creation.
Creation of value is the real essence of any business. While trying to merge and acquire a fresh company, value offered should be real and concrete, exerting a positive effect on the business. True value stems from serving customers through service or innovative products. The essential premise of a merger is to provide greater value together rather than focusing on a valuation approach.However, while value creation forms the core of all mergers, 80% of the mergers on an average fail to follow this leadership principle. The success or failure of mergers is determined by the extent to which the partnership unlocks the key to value creation. Here’s how the IBID Pragmatic Solutions acquihire works to tap mutual synergies.
#1 Clear Strategy Building
There needs to be clear strategy along with an open communication channel between stakeholders. The inability to identify and communicate the strategy hinders the M&A deal in attaining the desired result. Transparency is a must in the process. Additionally, a realistic approach needs to guide the deal making and management involvement is critical for success.
#2 Work Towards Engagement
The IBID Pragmatic Solutions acquihire ensures market share and growth, making goals reachable through a well defined and communicated purpose to stakeholders. Many challenges exist along the way. Strategies need to assess risks and challenges that may emerge across the process. Utilization of employee engagement programs with other strategies created around communication is the core part of ensuring mergers and acquisitions operate successfully. Forming the center of the overarching strategies for growth, engagement is critical to IBID acquihires.
#3 Trust the Specialists
A smart approach needs to be followed to built an advisory board irrespective of the merger and acquisition stage; the emphasis needs to be on heads of departments, stakeholders, internal staff and talented specialists to assist with the merger and acquisition process.
#4 Moving Past Profits
What sets the merger and acquisition deals by the IBID Group apart from others is the emphasis on value creation. In general, as merger and acquisition deals rise, value creation remains tough to attain. A study by BCG found that short term returns on public company dealings from the late 90s to 2010 averaged negative 1.0 percent. About more than half of these deals, therefore, destroyed value. Public company purchases of private firms create value in the short term, but the long term picture is altogether different. To beat the odds, the IBID Group approaches post-acquisition integration as seriously as deal negotiation.
#5 Skilled At Being Better Together
While buyers consider the advantages that accrue from the portfolio group, compatibility is another matter altogether. While there are many companies, you can only get the benefit of acquisition if you share synergies to achieve advantages together that are not possible in the standalone companies.
#6 Gathering Support
Employees and managers may be attached to older ways of doing things. While respecting the culture of the acquihired firm is essential, change must be implemented without making the target personnel feel a sense of status quo and inertia. The IBID Group excels at communicating a compelling vision for a fruitful and shared future and enables companies to align around that vision.
#7 The Importance of Management
During integration, agreement and mutual respect are critical. Key to resolving issues during integration is to focus on governance that is balanced. The team should be able to navigate the integration process, with the avoidance of pitfalls of integration through the provision of crucial feedback on what works and (equally importantly) what does not.
#8 Valuing the Acquihire
Valuing the intangibles is the core essence of the perfect acquisition. An acquihire is more than the net-operating assets. Each target firm has undefined segments of business such as customers and key employees. Purchase price needs to be considering these intangible factors too. Their value estimation is essential. Defining these aspects also serves to create a deeper understanding of the transition risk.
#9 Status Quo is Out, Disruption is In
While considering a target company’s potential, it is important to consider what you can bring to the table to enhance its productivity. If the decision is made to purchase a company, you need to be able to forecast future growth trends and eventualities, Likely factors that come into play must also be considered.
So, the IBID Group’s partnership with Pragmatic Solutions is the key to value creation for the entire industry. This is what makes the IBID Holdings a potent force to reckon with, when it comes to mergers and acquisitions that are strategic alliances rather than mere business ventures.
The IBID Group has emerged as a market leader in the industry because of its unique acquihire model, that values and respects the culture of the organization it forms a strategic partnership with. It also focuses on nurturing growth and fostering strategic innovation that leads the way for other M&A companies in the wider industry as well.