To begin, after all, from the strategy development realm we ascend to the shoulders of thought leaders for example Drucker, Peters, Porter and Collins. Perhaps the world’s top business schools and leading consultancies apply frameworks that have been incubated from the pioneering work of the innovators. Bad strategy, misaligned M&A, and poorly executed post merger integrations fertilize the business turnaround industry’s bumper crop. This phenomenon is grounded within the ironic reality that it is the turnaround professional that usually mops in the work with the failed strategist, often delving into the bailout of derailed M&A. As corporate performance experts, we now have learned that the process of developing strategy must take into account critical resource constraints-capital, talent and time; at the same time, implementing strategy must take into mind execution leadership, communication skills and slippage. Being excellent in either is rare; being excellent both in is seldom, if ever, attained. So, let’s talk about a turnaround expert’s look at proper M&A strategy and execution.

In your opinion, the essence of corporate strategy, involving both organic and acquisition-related activities, is the quest for profitable growth and sustained competitive advantage. Strategic initiatives require a deep idea of strengths, weaknesses, opportunities and threats, and also the balance of power inside the company’s ecosystem. The company must segregate attributes that are either ripe for value creation or prone to value destruction for example distinctive core competencies, privileged assets, and special relationships, and also areas prone to discontinuity. In those attributes rest potential growth pockets through “monetization” of traditional tangible assets, customer relationships, strategic real estate property, networks and details.

Their potential essentially pivots for both capabilities and opportunities that could be leveraged. But regaining competitive advantage by acquisitive repositioning is often a path potentially packed with mines and pitfalls. And, although acquiring an underperforming business with hidden assets and various forms of strategic real estate property can indeed transition a business into to untapped markets and new profitability, it is best to avoid investing in a problem. After all, an undesirable clients are just a bad business. To commence a prosperous strategic process, a business must set direction by crafting its vision and mission. Once the corporate identity and congruent goals are established the path might be paved as follows:

First, articulate growth aspirations and see the first step toward competition
Second, assess the lifetime stage and core competencies with the company (or perhaps the subsidiary/division regarding conglomerates)
Third, structure a healthy assessment method that evaluates markets, products, channels, services, talent and financial wherewithal
Fourth, prioritize growth opportunities starting from organic to M&A to joint ventures/partnerships-the classic “make vs. buy” matrices
Fifth, decide where you can invest where to divest
Sixth, develop an M&A program with objectives, frequency, size and timing of deals
Finally, use a seasoned and proven team prepared to integrate and realize the worth.

Regarding its M&A program, a company must first recognize that most inorganic initiatives usually do not yield desired shareholders returns. Considering this harsh reality, it can be paramount to approach the process using a spirit of rigor.

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