Many companies may miss out on growth opportunities, including acquisitions, if they do not reassess their strategy in light of today’s economic environment. According to an article in CFO Magazine, a number of companies are not executing acquisitions because they maintain a high hurdle rate, even though the cost of borrowing capital is relatively low …
Category: M&A and External Growth
Capstone to Speak on Multiple Pathways of Growth at FABTECH 2017
Capstone Managing Director John Dearing has been selected to speak at FABTECH 2017 in Chicago on November 7, 2017. John’s presentation, “Multiple Pathways of Growth: Innovative Strategies Business Leaders,” will explore five key options for taking company growth to the next level and help leaders understand the power of external growth (acquisitions, joint ventures, and …
Ikea Buys Freelance Platform TaskRabbit so You’ll Never Have to Assemble Their Furniture Again
If you have ever purchased Ikea furniture, you understand the struggle of trying to assemble it. The “simple” diagrams are not easy to follow, some of the screws or nails go missing, and sometimes the piece falls apart after you finish building it. Ikea is hoping to solve this problem for future buyers with its …
Buy vs. Build? How to Know Which Solution is Best
Should you acquire a company or develop your own solution? This is a question many leaders wrestle with when considering the best path forward for their company; however, there’s no one answer since every company’s situation is unique and each approach has its advantages and disadvantages. Let’s take a moment to explore these two pathways …
Developing a New Product or Service? Consider Acquisition
96 percent of businesses fail within 10 years. 80 percent of consumer products fail annually. Statistically, it’s obvious that launching a new product or service is challenging. Entrepreneurs pour their lives into starting their companies and while some of the lucky ones become the next Facebook, most struggle to succeed. Even large established corporations face …
2 Foundational Questions You Should Ask Before Doing a Deal
Many executives don’t always give enough pause and thought to the foundational aspects of M&A. The focus is often on doing, not thinking. Of course, it’s natural to get excited about an acquisition, but before you jump into the action, take a step back and think about the “why” of a deal. Why are you …
3 Ways You Can Find the Right Acquisition Target
36 percent of middle market companies struggle to find the right partner when it comes to pursuing deals. Most acquirers begin their search by looking at a list of for-sale companies only to come away from the process empty-handed and disappointed. Many for-sale companies are on the chopping block for a reason. They may be …
The Biggest Mistakes Acquirers Make and How You Can Avoid Them
If you pursue acquisitions, there is a high chance of failure. That sound harsh, but about 70% of all mergers and acquisitions fail. Deals fall apart before the transaction closes, suffer integration issues post-closing, or simply do not yield the return on investment that was expected. Think about the disastrous “merger of equals” between AOL …
What Every Manager Needs to Know About M&A – AMA Edgewise Podcast
Hollywood would have us believe that the bulk of M&A transactions are a ruse to split of up newly acquired firms, but the reality is most deals average $100 million in size and are not nearly as dramatic as the movies. In today’s environment, where the world is changing quickly, and customers are seeking additional …
Why You Shouldn’t Negotiate for a Win-Win in Acquisitions
When it comes to negotiation, we often hear about “win-win situations” where both sides benefit from the deal no matter what. While I understand the need to come to a consensus in order to move a deal forward, we’re not big fans of negotiation for a “win-win” because it implies you are also negotiating for …
