The Art of M&A Strategy: A Guide to Building Your Company's Future through Mergers, Acquisitions, and Divestitures

Seize the competitive advantage with today's most powerful strategic tool'¬ ;mergers and aquisitions Driven by rapid globalization, technological advances, and dramatic changes in public policy, coprorate restructuring has become "business as usual." The best way to compete in this new climate is to make M&A part of your overall business strategy. The Art of M&A Strategydemystifies this complex subject by taking you step by step through the process and providing real-world examples of companies that have successful used M&A in their overall business strategy, such as Cisco and GE. Part I outlines the role of M&A in strategy for each range of corporate strategy situation. Strategic contexts considered include growth (e.g. product/market development, capturing value chain opportunities, vertical integration, etc.), building and managing a business portfolio (e.g. diversification strategies, optimizing a business portfolio, role of buy and sell side), participating in industry consolidation, using acquisitions to create "real options", (i.e. strategic options for future development). Both buy and sell side are considered. Part II provides a step-by-step approach to considering industry context, the competitive imperatives, and strategy options and outlines how to establish criteria and boundaries, search and screen partner candidates, value and price synergies, and plan for strategy execution through post-deal implementation. Strategic considerations in deal structuring, negotiations, due diligence and post-merger integration are outlined. Part III explains how to use M&A as an ongoing strategy for competitive advantage and details the metrics of deal success and failure, including option value. Ken Smithhas practiced as a strategy consultant for 24 years, beginning with McKinsey & Company and now with SECOR Consulting. He has published several articles on corporate governance and public policy issues associated with global industry restructuring and international mergers and acquisitions, including his most recent article "Losing (Ownership) Control" in the Harvard Business Review. Alexandra Reed Lajoux (Fairfax, VA)is chief knowledge officer, National Association of Corporate Directors, who was editor for a series of professional publications, including Directors & Boards, Mergers & Acquisitions, Export Today, HR Director/Human Capital, and Director's Monthly. She has authored or coauthored five books on mergers and acquisitions for McGraw-Hill.

Part I How M&A Creates Value in Strategy
Chapter 1 Building and Managing a Portfolio of Businesse
Chapter 2 Consolidation: Value in Cost Synergies
Chapter 3 Expansion Strategy: Value in Revenue Growth
Chapter 4 Real Options in M&A
Part II Development and Execution of M&A Strategy
Chapter 5 M&A in Strategic Planning
Chapter 6 Searching, Screening, and Selection
Chapter 7 To Be a Buyer or a Seller?
Chapter 8 The Director’s Role in M&A
PART III When the M&A Program is Central to Strategy
Chapter 9 Global Industry Restructuring
Chapter 10 The Role of Postmerger Integration in M&A Strategy
Chapter 11 Building a Sustainable M&A Program with the Help of Advisors
Chapter 12 M&A as a Core Competence
Conclusion
Appendix I.1 On the Success and Failure of Major Deals
Appendix II.1 Suggested Readings in Strategy and Strategic Planning Methodologies
Appendix II.2 Wheel of Opportunity/Fit Chart with Illustrative Delphi Scoring
Appendix II.3 Information Sources and Tips for Target Screening
Appendix II.4 NACD Guidance on the Board’s Role in M&A and Strategy
Appendix III.1 Public Policy and Corporate Growth: Selected SECOR Consulting Case Studies Regarding the Role of Public Policy in International M&A
Index