Category: M&A and External Growth

Future Demand

Future demand is king for reasons that are self-evident, once you pause to think about it. Ultimately, your growth depends on your success in meeting the needs of customers you have yet to capture. What do they want today? What will they want in the future? Business winners are the ones who best answer these …

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Less is more?

When you hear the word “grow,” you probably think of getting bigger:  having more customers, more markets, more products, or more revenue. I prefer to see growth strategy as a way to recalibrate your company, enabling you to become increasingly focused and effective. Recalibration is a continual necessity today, because economic and technological changes are …

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Seven Strategic Questions

Last week, I wrote about the importance of self-exploration. To begin your journey of self-exploration, here are seven strategic questions you may find helpful: 1)     What business are we in? 2)     What is our core competency? 3)     What are we not? 4)     Where is our pain? 5)     What are our dreams? 6)     What is our …

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Adopting a Strategic Approach

Many quite sophisticated business leaders allow themselves to drift into a purely reactive relationship to growth. They listen to whoever comes to lunch, size up whatever opportunity comes across their desk, and get caught in the lure of the deal.  There is a better way, based on a thorough understanding of your own company, and …

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Know Thyself

You’re probably reading this blog because you are ambitious for growth and are seriously considering acquisition as a way to reach your goals. External growth is exciting and it’s easy to rush into action without an adequate review of where you are coming from. This would be a mistake. Before you grow your company, you …

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From Beginning to Beginning

When I am teaching M&A, I often use the phrase ‘‘from beginning to beginning.’’ I am signaling a difference from the more familiar phrase ‘‘from beginning to end,’’ which suggests that once the deal is signed, the process is over. In my experience, the end of an M&A transaction marks the beginning of a whole …

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Price Isn’t Everything

Are you considering an acquisition? Remember, when it comes to buying companies, especially privately held ones, the transaction is almost never about just the price. There is always something going on that falls outside the spreadsheets. Understanding that mysterious ‘‘something’’ is what can make or break your deal. The statistics are frightening. By most reckonings, …

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Why is Fortis Acquiring CH Energy?

Fortis, Inc (TSX: FTS), a Canadian utility company, announced yesterday that it is acquiring CH Energy Group (NYSE: CHG) for $1B in cash plus the assumption of $500K in debt, which is about 10x 2011 EBITDA. CH Energy, which is a public utility headquartered in Poughkeepsie, NY, said this about the benefits of the acquisition: …

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