M&A is an excellent tool for growing a company. Still, acquirers should consider a variety of strategies before committing to a transaction. Choosing the right growth approach also dictates any integration plans. This article will talk about executing various strategies and how to get a CEO on board, featuring Rohit Dave, Head of Corporate Development at Block.
"Alignment on what you're trying to accomplish from a business need perspective is critical when deciding the type of acquisition to execute." - Rohit Dave
Deal fever is real and is one of the leading causes of failed M&A. To avoid this, acquirers must leverage their overall strategy before doing acquisitions. According to Rohit, there are three ways to generate deals.
When choosing an M&A strategy, teams must understand the deal's strategic rationale. In addition, understanding the north star will help identify the proper transaction to pursue. There are three major types of M&A strategy:
To avoid deal fever, the deal team must get buy-in from the CEO and board of directors. To get buy-in, Rohit suggests two things: