One of the key questions of strategic management of M&A pertains to why some acquirers are successful while others dramatically fail. We contend that target identification is one of the critical aspects in the M&A process determining M&A success. Simply, a strategic fit between acquirer and target offers greater potentials while misfit provides only limited opportunities or even results in value destruction. As such, a broad understanding of targets early on in the screening process is cornerstone of successful M&A. Processing comprehensive information about potential target firms beyond financial KPIs and taking into account various strategic scenarios forms the basis for joint value creation after deal closing.
Largely, acquirers identify or recognize potential target firms in three different patterns – ranging from opportunistically driven (jumping on bandwagons of lacking business succession or imminent liquidity problems of companies), externally driven (proposals by investment banks or consultants), to internally driven (in-house search).
All three approaches come with limitations as well as advantages, and have one element in common: They are managed by humans. While managers are trained to base decisions on comprehensive analysis aiming to be as rational as possible, they face serious cognitive biases in decision-making. The inherent complexity triggers these biases and they might even mutually reinforce each other.
The “Acquisition Strategy & Target Screening” webinar series aims to shed light on the various biases and challenges of target screening from a strategic perspective. Participants benefit from an increased awareness of common pitfalls as well as best practices and examples for value-creating M&A screening.
Who should attend: M&A decision makers from corporates, SMEs, and consultancies
Invited guest-speakers: Multiple guest speakers from research and practice will offer additional insights into and share their experiences with the topic of “Acquisition Strategy & Target Screening”.
Webinar conveners: Dr. Mai Anh Dao (CEO and Co-Founder MADiscover) Prof. Dr. Florian Bauer (CRO and Co-Founder MADiscover)
To register click here