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1. Developing Business and Acquisition Plans--Phases 1 & 2 of the Acquisition Process
3. Current Learning Objectives Primary learning objectives: To provide students with an understanding of
a highly practical planning based approach to managing the acquisition process and
the issues associated with each phase of the M&A process
Secondary learning objectives: To provide students with an understanding of
selecting the correct strategy from a range of reasonable alternatives and
how to develop an acquisition plan
4. The Acquisition Process Pre-Purchase Decision Activities
Post-Purchase Decision Activities Phase 1: Business Plan
Phase 2: Acquisition Plan
Phase 3: Search
Phase 4: Screen
Phase 5: First Contact
Phase 6: Negotiation
Phase 7: Integration Plan
Phase 8: Closing
Phase 9: Integration
Phase 10: Evaluation
5. Phase 1: Business Plan Industry/market definition
6. Phase 1: Business Plan Industry/market definition
External analysis (customers, current competitors, potential entrants, substitute products, and suppliers)
7. Phase 1: Business Plan Industry/market definition
External analysis (customers, current competitors, potential entrants, substitute products, and suppliers)
Internal analysis (strengths and weaknesses as compared to the competition)
8. Phase 1: Business Plan Industry/market definition
External analysis (customers, current competitors, potential entrants, substitute products, and suppliers)
Internal analysis (strengths and weaknesses as compared to the competition)
Opportunities/threats (from external and internal analyses)
9. Phase 1: Business Plan Industry/market definition
External analysis (customers, current competitors, potential entrants, substitute products, and suppliers)
Internal analysis (strengths and weaknesses as compared to the competition)
Opportunities/threats (from external and internal analyses)
Business vision/mission
10. Phase 1: Business Plan Industry/market definition
External analysis (customers, current competitors, potential entrants, substitute products, and suppliers)
Internal analysis (strengths and weaknesses as compared to the competition)
Opportunities/threats (from external and internal analyses)
Business vision/mission
Strategies (cost, differentiation, focus, or some combination)
11. Phase 1: Business Plan Industry/market definition
External analysis (customers, current competitors, potential entrants, substitute products, and suppliers)
Internal analysis (strengths and weaknesses as compared to the competition)
Opportunities/threats (from external and internal analyses)
Business vision/mission
Strategies (cost, differentiation, focus, or some combination)
Implementation strategy (selected from range of reasonable options)
Solo ventures or go it alone
Merger or acquisition
Alliances (including JVs, partnerships, and licensing)
Minority investments and
Asset swaps
12. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
13. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
14. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
15. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
Management preferences
16. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
Management preferences
Search plan
17. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
Management preferences
Search plan
Negotiation strategy
18. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
Management preferences
Search plan
Negotiation strategy
Determine initial offer price
19. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
Management preferences
Search plan
Negotiation strategy
Determine initial offer price
Financing plan
20. Phase 2: Acquisition Plan Plan objectives (support the realization of key business plan objectives)
Timetable
Resource/capability review
Management preferences
Search plan
Negotiation strategy
Determine initial offer price
Financing plan
Integration plan (or exit strategy for financial buyers)
21. Things to remember... The success of an acquisition is dependent on the focus, understanding, and discipline inherent in a thorough and thoughtful business plan
An acquisition is only one of many options available for implementing a business plan
Once a decision has been made that the implementation of the firms business strategy requires an acquisition, an acquisition plan is required.