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:
- Pursuing the ever-elusive value capture
- Lever #1: Utilize your functional teams early in the acquisition process
- Lever #2: Complete your commercial & operational due diligence before closing
- Lever #3: Assess the revenue & cost synergy potential of the deal
- Lever #4: Develop a realistic strategic operating model design
Let’s get to it!