The formula that transforms the probability of success when growing your business with M&A

The M&A Formula brings together decades of research and case studies from recognised leaders into a model that anybody can use to grow their business using M&A, no matter large or small. Whether you see it as avoiding the painful failure that currently runs at a Global average of over 50%, or stacking the cards in your favour, business model-driven M&A will definitely help you win by either seizing opportunities from your competition, or failing fast before it really hurts you.

M&As fail because the thinking surrounding them fails the rigour of scientific examination; by observing the results of conventional processes and positions, the need for new direction becomes apparent. This book presents a new set of tactics based on data from high-profile M&As, constructing a modern map of practical and business model-driven tactics that succeed in the real world. Case studies of successful deals illustrate on-the-ground implementation of a new M&A model, and tactics formulated by M&A specialists equip you with the wisdom to avoid common pitfalls and costly errors.

The M&A sector is continuing to grow, and the trend shows no sign of slowing. Business leaders need a robust, business model-driven M&A strategy for handling these high-stakes transactions, but the usual methods are no longer cutting it. This book provides a new way forward for businesses seeking smart M&A tactics, helping them to:

M&A failures have reached global epidemic proportions, with economic impacts to scale. Businesses around the world are in dire need of direction, and as the stakes grow, so do the potential costs of mistakes.The M&A Formula provides sound guidance and a practical new model for successful M&As in the new economy.

PETER ZINK SECHER is a founding partner of Fixcorp, a large corporate M&A and treasury service. He created the M&A Corporate Framework Agreement (CFA), which has already disrupted legacy banking models in M&A. He gained his extensive experience in such positions as head of M&A at FrieslandCampina, head of Capital Markets at FIH Bank (Corporate Bank), senior vice president at Danske Bank, and executive director for corporate banking at Saxo Bank.

IAN HORLEY is head of Online Strategy and a Hubspot Gold Partner. He is also a founding board member for British Chamber of Commerce in Denmark, an advisory board member for SourceConnect, and founder, corporate marketing consultant, and digital marketing expert for Juice Tactics.

Acknowledgments xi

About the Authors xiii

Introduction: The Opportunity, the Pain, and the Promise 1

Why Do M&A?

WhatWill You Learn From This Book?

Who IsThis Book For?

WhyWas This BookWritten?

HowWas This BookWritten?

WhoWrote This Book?

The Professors, the Case Insights, and the

Research Insights

Part I THEM&AFORMULA 29

1 What Is theM&A Formula? 31

Before the M&A Formula

Should You Build or Buy?

Understanding Business Model-Driven

M&A

Success and Failure in M&A

2 Be BusinessModel Driven (Step 1):What

Is BusinessModel-Driven M&A? 51

Business Model Complementarity and Signals for Success

Three Real Business Models: M&A Drivers and Complementarity Score

What Are the Goldman Gates?

How to Create a Target List Based on the Goldman Gates?

3 Communicative Leadership (Step 2) 69

Lesson #1 in M&A Leadership: Drive Hard with Soft Management Tools

Lesson #2 in M&A Leadership: Create a Strong Foundation for Your People

Lesson #3 in M&A Leadership: Silent People Are NOT Team Players

The M&A Deal Committee

Intent-Based Leadership

4 Take Ownership (Step 3) 91

The M&A Playbook

Governance in Corporate Processes

CFA: Company-Specific M&A Engagement

Letters

M&A Launchpad

Funding and Corporate Finance

5 Accelerating Your M&A Formula: Digitizing M&A 117

Strengthening the Formula

The M&A Dashboard

Digitizing: The Human Side of M&A

Now, Science Meets Business

Part II THEM&AFORMULA APPLIED 131

6 Case Insights (CI) and Research Insights (RI) 133

CI1: DSV: From Ten Trucks to ¤10bn

CI2: RB: King of OTC Improved Value Proposition and Client Relation as Business

Model Driver in M&A

CI3: Heritage Comes First at LVMH

CI4: The Global Brewer: Driving M&A

Growth One Beer at a Time

CI5: Danaher: The Importance of Teamwork

CI6: FrieslandCampina: A Merger of Equals or an Impossible Utopia?

CI7: ASSA ABLOY: The Highest Total Return to Shareholders in Our Research Period (1st Jan 20071st Jan 2017)

7 Next Steps 201

M&A Reputation as a Tool for Success?

Can You Build a Good M&A Reputation

and Attract Sellers?

Things to Avoid InternallyBias

Where to Get External Advice?

FON-A-PALBuilding Your Resource Library

What DoWe Mean WhenWe Talk About

External Advisors?

Financial Advisors/Investment Banking

M&A Myth-Busting

What Your Success Looks Like?

Index for Case Insights& Research Insights 227

Index 232

Acknowledgments xi
About the Authors xiii
Introduction: The Opportunity, the Pain, and the Promise 1
Why Do M&A? What Will You Learn From This Book? Who Is This Book For? Why Was This Book Written? How Was This Book Written? Who Wrote This Book? The Professors, the Case Insights, and the Research Insights

Part I THEM&AFORMULA 29

1 What Is the M&A Formula? 31
Before the M&A Formula
Should You Build or Buy? Understanding Business Model-Driven M&a Success and Failure in M&A

2 Be Business Model Driven (Step 1): What Is Business Model-Driven M&A? 51
Business Model Complementarity and Signals for Success Three Real Business Models: M&A Drivers and Complementarity Score What Are the Goldman Gates? How to Create a Target List Based on the Goldman Gates?

3 Communicative Leadership (Step 2) 69
Lesson #1 in M&A Leadership: Drive Hard with Soft Management Tools Lesson #2 in M&A Leadership: Create a Strong Foundation for Your People Lesson #3 in M&A Leadership: Silent People Are NOT Team Players The M&A Deal Committee Intent-Based Leadership

4 Take Ownership (Step 3) 91
The M&A Playbook Governance in Corporate Processes CFA: Company-Specific M&A Engagement Letters M&A Launchpad Funding and Corporate Finance

5 Accelerating Your M&A Formula: Digitizing M&A 117
Strengthening the Formula The M&A Dashboard Digitizing: The Human Side of M&A Now, Science Meets Business

Part II THEM&AFORMULA Applied 131

6 Case Insights (CI) and Research Insights (RI) 133
CI1: DSV: From Ten Trucks to ¤10bn CI2: RB: King of OTC Improved Value Proposition and Client Relation as Business Model Driver in M&A CI3: Heritage Comes First at LVMH CI4: The Global Brewer: Driving M&A Growth One Beer at a Time CI5: Danaher: The Importance of Teamwork CI6: FrieslandCampina: A Merger of Equals or an Impossible Utopia? CI7: ASSA ABLOY: The Highest Total Return to Shareholders in Our Research Period (1st Jan 20071st Jan 2017)

7 Next Steps 201
M&A Reputation as a Tool for Success? Can You Build a Good M&A Reputation and Attract Sellers? Things to Avoid InternallyBias Where to Get External Advice? FON-A-PALBuilding Your Resource Library What Do We Mean When We Talk About External Advisors? Financial Advisors/Investment Banking M&A Myth-Busting What Your Success Looks Like?
Index for Case Insights& Research Insights 227
Index 232