M&A STRATEGY & PROCESS
Situation
Our client was the global leader in a premium consumer brands sector. During the peak years of the recent economic crisis, M&A activity was reduced, to keep full focus on established operations. In the recovery, our client raised the importance of Strategic Business Development. But there was a need, in the new environment, to first re-define what “strategic” M&A meant, and then develop a framework to scout and screen brand and company profiles that fit the strategy.
Approach
We conducted a global update of sector, category and market dynamics covering all high-end segments, and prioritized them. We then identified a specific, narrowly-defined role for Business Development in the company’s overall strategy. Simultaneously, we re-evaluated our client’s core organizational strengths and capabilities in brand development, in order to tailor specific criteria for rating attractiveness of potential targets. Finally, we developed a simple process for on-going monitoring of priority segments and targets.
Results
A new Business Development Strategy was approved and implemented. Four global segments of our client’s industry sector were scouted in-depth for potential targets, and each target set was then screened according to the new criteria, resulting in a narrow and prioritized target set to approach.