KPMG recently reported that merger and acquisition (M&A) has reemerged as a leading growth strategy in the technology sector with deal value surpassing pre-recession levels.
Anticipating that economic and market conditions will remain positive in North America, 82% of KPMG survey respondents said they were planning at least one acquisition in 2016; 19% planned to make two acquisitions; 11% planned three acquisitions and 10% planned 11 or more deals for the coming year!
In 2015, the value of the global mergers and acquisitions industry was $4.614trillion. The highest value of underwritten M&A deals was noted in the technology, media and telecommunications industries, which is no surprise.
This trend for M&A is set to continue into 2016 and will be a vital driver for competitive advantage and growth, especially in the tech industry.
Merger & acquisition can deliver great strategic benefits for tech businesses and we see many organizations ‘upgrading’ their portfolios, adding to their services and extending their territories and reach via M&A.
Whilst we see a lot of work done ‘upfront’ in the deal making and post-deal, in the tech integration – when it comes to it – too many organizations take the foot off the gas just when it matters most…when they go to market.
Result. The M&A does not deliver on the expected return. Astonishingly in recent surveys up to 80% of organizations fail to achieve against their M&A objectives.
There will always be the longer-burn challenges that need to be addressed in M&A, these include assimilating or developing new cultures, defining new ways of working, and fully integrating business teams.
But there are two threats to success that can quickly be solved to help ensure the M&A delivers against expected return as soon as possible:
- Uncertainty in the market (investors & customers) of what the new (merged) capabilities can deliver as a value
- Uncertainty internally (sales & marketing) of what the proposition, portfolio and offer is and how to sell it
How we approach this.
- We make sure clients are willing to invest a fraction of a percentage of the overall M&A cost in making the M&A ‘market-ready’ and ‘market-relevant’
- We make sure clients are willing to fully engage and collaborate in a rapid (speed to market is essential!) but rigorous programme of work with clear outputs and outcomes defined right from the start
- We make sure a client’s target audience and their needs are ‘center stage’, this includes: internal stakeholders & workforce, analysts & influencer networks and at the very heart, the customer – at a sector, business, function and even individual level.
If your willing to commit to the above and your organization is undertaking a strategically important M&A. Then we can help.
Working rapidly and in high-pressure, complex, multi-stakeholder situations, with you we’ll reach a consensus of the clear new position, focusing on four areas of expertise:
- Portfolio realignment – architecture development to provide a new solution portfolio structure (top to bottom) that is logical and simple to navigate, understand and buy
- Competitive positioning – robust and analytical development of the marketing positioning against competitors to ensure market differentiation and value is recognized and aligned with new capabilities by market, investors and employees
- Business messaging – repositioning of go-to-market messages to enable engagement with key accounts, sectors and functional target roles to provide a winning differentiated emotional and rational sales argument
- Rapid integration of assets – transition and production of a large volume and scale of existing assets and tools into new proposition family in a predefined, short period of time.
Your organization can clearly communicate – exactly – the cumulative critical strengths, benefits, differentiators and capabilities offered by the acquisition.
The outcomes (include).
- Increased internal clarity and market perception of the new capabilities
- What they can buy, how they can buy it and what they get
- Swifter and wider assimilation of new talent and capabilities into the business and business lines
- Integration of the offer set into the business proposition, messaging, content and assets
- More unified, more efficient, more effective sales engagement and conversations
- Potential to capitalize on competitive edge or first-mover advantage
- Ability to sell from a position of strength with greater clarity and thus confidence
To hear more about how we (at The Craft) are bringing clarity to complex stories and new levels of confidence to sales and marketing.
Drop me a line: firstname.lastname@example.org
Or give me a call: +44 (0)7792 846 883
Adam Greener, Business Director, The Craft Consulting.