The Top 4 Levers That Drive 80% of Value Capture in Successful Acquisitions

The Top 4 Levers That Drive 80% of Value Capture in a Successful Acquisition

Value capture is, in essence, the end-all, be-all of a company’s life-cycle. Yes, you likely have other motivations for starting your company, but without capturing any value, your company will have a very short lifespan.

When it comes to acquisitions, if you don’t have a good strategy to drive value capture, you’re not only wasting your time, but hobbling your future potential in the process. If you look at some notable examples like Daimler Chrysler and Sprint/Nextel, it’s pretty clear that a bad deal will stick to you for a long time.

You might even end up as a cautionary tale for future M&A executives. No one wants that. Aspire to be the Apple of acquisitions. You can do that by focusing on four distinct levers that drive 80% of value capture.

Four things. They’re not even difficult things.

So in this Process Street post, I give you the rundown of the four levers you need to prioritize during your acquisition, and exactly why they make such an impact:

Let’s get to it!
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3 Major Pitfalls to Avoid During Post-Merger Integrations (Plus Free Template!)

3 Major Pitfalls to Avoid During Post-Merger Integration (Plus Free Template!)

AOL and Time Warner. Daimler Chrysler. Sprint and Nextel. Quaker Oats and Snapple.

You see where this is going, right?

I admit: the role of Monday morning quarterback is not very challenging – particularly in these four cases. If nothing else, they serve as a prime reminder that even the highest flyers can – and do – fall, and fall hard.

There was a small amount of pure bad luck – the dot-com bubble burst AOL’s value, high gas prices stopped Chrysler’s SUVs in their tracks – but a large number of merger integrations fail for completely foreseeable reasons – and a good dose of human error.

In this Process Street post, I’m going to look at the three pitfalls and why they have such a huge impact on the success (or lack thereof) of your post-merger integration.

If you just came for the free template, you can grab it below:


Click here to get the Post-Merger Integration (PMI) Checklist workflow!

This workflow is designed to walk you through every stage of the post-merger integration process from pre-planning to post-mortem. While the step-by-step process will ensure nothing gets forgotten, it also provides ample space to document important decisions and data. Features like Dynamic Role Assignments, Due Dates, and Approvals keep everyone on the same page and make it immediately apparent if something is headed off course.

Unexpected obstacles will always pop up, but the PMI Process Checklist will help you prepare for the worst and make your integration run smoothly.

With that out of the way, let’s go through the most common ways it can all go wrong:

Let’s talk about some bad decisions!
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