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Evaluating an Acquisition Candidate Based on Market Synergy
The client is the U.S. operating unit of a large multinational company based in Europe. The U.S. unit serves the graphic arts and textile market with advanced equipment, products, and services.
The U.S. unit identified a certain company that served similar markets with complementary products and services. The key issue was to identify and quantify the synergies that would be produced by the acquisition. A key requirement was to organize the information and present it to the parent company in a manner that would convey the full range of benefits the acquisition would provide.
Beta Consulting devised a novel matrix covering all aspects of operations, management, sales, marketing, distribution, technology, product lines, strategies, market position, growth outlook, competition, and customers. We then gathered and developed the information needed to complete all sections of the matrix.
The matrix proved to be an efficient and effective way to analyze and compare all aspects of the companies. We were able to identify and quantify areas where the combination of the two companies would produce financial, marketing, and technological benefits that were greater than either company could produce alone.
The information and analysis enabled the U.S. management team to make an effective case for the acquisition.
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