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Acquisition strategies - the first step to successful company takeovers

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Acquisition strategies - the basis for successful M&A acquisitions

The process of a company takeover can basically be divided into three phases:

  • The M&A strategy: Developing the acquisition strategy
  • The M&A process: preparation and execution of the M&A transaction
  • The M&A integration: Preparation and implementation of the post merger integration

From our many years of experience as M&A consultants, all three phases are causal for the success of a company takeover. Daily M&A practice shows that only very few buyers have prepared professionally for these three phases and implement them successfully. Rather, M&A practice shows us that many acquisitions of companies take place rather randomly and that there is no M&A strategy in place, the M&A process is unprepared and uncoordinated and little time, money and effort is invested at the latest during the M&A integration. 

The result of this approach can be read from the most diverse M&A statistics on the success and failure of M&A transactions. Depending on the M&A statistics, the rate for unsuccessful M&A deals is >50% - 90%; whereby "success" for the buyer is defined differently in the individual analyses. As a rule, the M&A deal is only successful for the sellers!

Our recommendation as M&A advisors is therefore to prepare comprehensively for all three phases, to implement them professionally with an experienced advisor and to learn from one's own successes and failures. This is the only way to achieve a positive learning curve effect as a buyer. American companies from the information technology sector set the bar very high for successful M&A transactions: examples are Cisco, Google, Oracle, to name just three. In contrast, there are few companies from German-speaking countries that have successfully implemented an acquisition strategy: In our view, CompuGROUP is one of these companies.

The authors of the highly recommended book on acquisition strategies (definition, basics, strategies, etc.):Der M&A-Prozess: Konzepte, Ansätze und Strategien für die Pre- und Post-Phase“ -(only in German language available) find a formulation for this that we think is quite appropriate:

"Strategic M&A competence is a dynamic capability that enables the organisation to create, expand and change its operational M&A capabilities at both the individual transaction level and the acquisition strategy level" (p. 12. Keuper/Häfner/Glahn) as well as "...that the best frequent buyers develop skills to manage acquisition programmes..." (p. 16 Keuper/Häfner/Glahn)".

Strategy Consulting - M&A Strategy

For KP Tech Corporate Finance, M&A strategy is considerably more than simply an acquisition plan. Since our foundation in 2003, M&A strategy consulting has been our core business when advising on the buy side. We work with companies in Germany, Austria and Switzerland to develop M & A strategies that lead to sustainable success in corporate acquisitions and thus enable the successful implementation of corporate goals. 

Our M&A strategy experts support our clients in mastering multi-layered entrepreneurial challenges and successfully implementing suitable corporate acquisitions. At the beginning of the cooperation with our clients is the decision on what our client would like to focus on via mergers & acquisitions transactions so that they can act better in the market than the competition and, above all, successfully implement better corporate acquisitions than the competition and thus achieve higher corporate returns.

KP Tech Corporate Finance

KP Tech Corporate Finance supports you in the development of the acquisition strategy, in the preparation and implementation of the M&A process and in post-merger integration. Benefit from more than 20 years of experience in international consulting for company acquisitions and sales. Well-known national and international clients were and are currently clients of KP Tech Corporate Finance in the field of corporate acquisitions and M&A acquisition strategies. We advise buyers on buy & build strategies as well as on the development and implementation of acquisition strategies in Germany, Austria and Switzerland.

Contact KP Tech Corporate Finance M&A Advisory Germany Austria Switzerland

Would you like more information?

As an owner-managed and independent management consultancy, we specialise in corporate finance consulting. The focal points of our M&A consulting are the topics: Company sale, company acquisition, company valuation, company succession as well as advice on private equity transactions.

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Phone +49 89 21536609-0
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Contact

KP TECH Beratungsgesellschaft mbH
Maximilianstr. 2
80539 Munich / Germany
Further offices in Berlin, Frankfurt/Main, Duesseldorf

Phone +49 89 21536609-0
Contact form

About us

München • London • Philadelphia

KP Tech has been providing consulting services for more than 20 years with a focus on company acquisitions, company sales, company succession, equity capital and company valuation. Our clients include small and medium-sized companies as well as international groups and private equity companies. Most of our clients come from the technology, services and consumer (including e-commerce) & healthcare sectors.

Membership

KP Tech is a member of the Association of German M&A Consultants (VMA), a non-profit alliance of prominent partner-led and independent M&A consulting firms (Frankfurt/Main).