Yesterday's post gave advice to sellers on how to improve the odds of winning an evaluation that uses a comparative business case, based on an M&A process my friend Bob is running right now. The comparative business case is one of the more common tools buyers use to analyze potential deals; unfortunately, in this case at least, it's also one of the less helpful. This post turns to the question of how a buyer should be looking at the decision in front of them.
Wednesday, May 8, 2013
Tuesday, May 7, 2013
Winning an M & A beauty contest
A friend today related over lunch a choice he's currently facing: which of three competing startups to acquire. How does he think about this choice? Here's a great chance to see Design For Exit principles in action.
Let me lay out the scenario. Bob (I'll call him) is the newly-appointed business development exec for a unit of a Big Company. His business unit needs a key technology to integrate into their product, and they'd rather buy it than build it. The business unit's technical evaluation has narrowed the field of many small companies to a short list of three choices.
Let me lay out the scenario. Bob (I'll call him) is the newly-appointed business development exec for a unit of a Big Company. His business unit needs a key technology to integrate into their product, and they'd rather buy it than build it. The business unit's technical evaluation has narrowed the field of many small companies to a short list of three choices.
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