Die dramatic acquisition of the Canadian company “Tim Hortons” (coffee) by “Burger King” (Fast Food) shows that modern acquisitions have to realize more strategic targets than only the classical growth, synergy or market entry. Burger King has combined the company purchase with a company fusion and is using some additional advantages without losing sight of the principal reasons for its acquisition.
RPPC Pro Consult is a specialist of professional company fusions with small and mid-sized companies. A deep and long-term experience, passion as wells as a comprehensive process know-how are the basis of our consulting services together with the awareness for values, tradition and quality.
At first, let’s have a look at the typical features of the company acquisition and see the gist.
The classical company purchase at first:
• Company growth beside of the operational possibilities
• New business segments at next
• Synergies (i.e. product, market, technology, sales etc.)
• Infrastructure, logistics & maintenance
• New markets & Market entries
It’s necessary and very important to check the possible risks in a diligent way. Anyway whether being a big player or mid-sized company, the company acquisition is influencing the further development and results. Typical risks as the business continuation, investment need, finance structure, environment, development of market and competition usually are considered by the professional and neutral M&A consulting, mergers and acquisitions, so that – instead of all individual existing factors - the company purchase should come to success.
It’s necessary not to forget the possible RISKS. They should be considered carefully.
And now the combined company acquisition and fusion:
• Strait and more efficient management from one hand
• Use of the best partner advantages each (i.e. location/taxes/etc.)
• Optimized rationalization
• Change of image and positioning
• Flexibility of brandings (trademark/products etc.)
The combined acquisition of company purchase and fusion saves almost always the advantages and targets of the – so called – traditional company acquisition. It is just a model enlargement of the strategic options, based on individual objectives. In practice are the most important differences to find with the implementation. Therefor the packages of strategies and measurements are constructed more complex and sophisticated already with the search for candidates. Additional to the acquisition and fusion model a sustainable positive Integration is crucial for the success.
The decision-making for a combined company acquisition and fusion needs to evaluate the model advantages specifically better than the option without company fusion.
In general we see two possible initial situations:
a.) The company for the “fusion-purchase” was already found, or
b.) The fusion-purchase is already defined as the fixed business aim, but no suitable company was found up to now.
Both cases urgently need specific analyses and preparation work in advance for using energy, money and time in efficient way. This will also raise the chance that the company purchase including fusion can be realized within the planned timeframe.
If a consultant gives the guidance for using professional consulting services, sometimes the companies are reacting by an I-do-it-myself-reflex. – But the experience shows that exactly this guides to diversions, cost explosions as well as to losses of time. Unfortunately we notice the complete stopping of the project more often than not.
The professional project consulting in advance makes definitely sense! – The costs for that are manageable and limited. As profit from the elemental aspects will be worked and cleared out in common. This gives already the indicatory answers for success chances, project and time needs, budgets to plan etc.
Serious and engaged acting consultants as experts for company brokerage will always advise neutral, fair and independent about the necessary projecting as well as about the realistic chances. – Such a basis creates better decisions!
These questions can be cleared by a project consultation for company acquisition and fusion. – Some examples:
• Is the existing project right constructed? Are the aims realistic?
• Do I really know my company aims?
• Are the project costs and financing planned in a realistic way?
• What about the calculation of time budgets and time frames?
• Does the initial situation and objectives fit?
• Which strategy options exist, what are the advantages and downsides?
• Which project aims could be selected for logical reasons?
• What kind of external and professional support is needed?
• Is the consulting chemistry right?
• What are exactly the next steps, measures, decisions?
Also the following elements can be worked out and cleared by a project consultation for the company acquisition including fusion:
• Analysis of state or phase of the existing project including suggestions for strategies and measures.
• Target-Profiling and Search-Strategy
• Consulting & support of project segments, i.e. negotiation support
• Analysis und catalogue of measurements with the process management
• Company valuation
• Purchasing and fusion model
• Active integration support
• Individual problems and current positions
• Initial situation – Professional analyzed, described and evaluated
• Calculation of time budgets, efforts & costs
• Work out of steps, measurements and sequences
• Neutral valuation of real chances & existing risks
• Eventually research for candidates and assessment
• Fusion model
• Company valuation
• Probably the obligatory needed due diligence
• Master plan for Integration of the fusion partner
The neutral fusion consulting moderates the needs of both partners and already considers important aspects of the subsequent integration (employees, philosophy, culture, risk variables, market, competition, suppliers etc.).
• Practice support of the measurements
• Permanent success controlling
• Adaption & preparing corrections
• Support & strengthening of the company culture
A company fusion is a deep transition with the development of every enterprise. Herewith are the sophisticated tasks with the growth potential and risks, specialized synergy effects as well as the power of market and innovation. Discuss with an experienced fusion consultant about the chances, risks, potentials and possible company models. – It’s worth it.
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RPPC ROLF POPP PRO Consult