Transaction Strategies can take many forms, but most can simply be classified around one or more of the following categories:
- Organic Strategies: Targets either a new product or service offering which is complementary to an organization’s existing operations, long term strategic objectives and corporate tax attributes.
- Strategic Gap Strategies: Identifies target opportunities capable of filling a strategic need or extension within core product lines and potentially stimulating core revenue growth.
- Geographic Gap Strategies: Identifies opportunities which are capable of either partially or completely filling geographic holes.
- Core Revenue Capture / Cost Consolidation Strategies: Identifies targets competing in an existing core market and are capable of strong consolidation savings.
Each category requires a different execution strategy and has a significantly different short term and long term impact to an organization’s value. ITM’s Transaction Strategy Group (“TSG”) works with your management team to understand how acquisitions can supplement the organization’s organic objectives and maximize the value of the organization.
ITM’s TSG is well skilled and experienced in matching your overall corporate strategy to a complementary acquisition strategy which will provide long term benefits for years to come.
Once a clear acquisition strategy has been developed, ITM’s TSG can assist your organization in undertaking a rigorous review of the market to identify Tier 1 and Tier 2 candidates which are most consistent with the strategy’s objectives.
PROSPECT COMMUNICATION AND RELATIONSHIP DEVELOPMENT:
Rarely will a simple call to target candidates result in immediate transaction discussions. Just like valued customers take time and effort to capture, approaching preferred candidates should be undertaken from a relationship building perspective. Establishing your company as an entity capable of providing mutually beneficial value is the key to creating open communication with preferred targets. Most companies are privately owned – the owners usually do not have to sell.
ITM’s TSG has developed several strategies to establish your company as a capable, credible and ethical buyer in your targeted market segment.
In cases when viable candidates may already be on the market, or are owned by private equity institutions, TSG can assist in the development of a communication plan to the financial intermediary community which will ensure that all viable candidates are brought to your organization’s attention.
