Cash keeps you running When it comes to the success of a start-up, the saying “Cash is King” could not be emphasised enough. Cash is often the main reason companies stay alive longer than its competitors. It sustains businesses while seeking a new round of financing, driving rapid growth. It
With many large corporations taking on M&A as a potential growth strategy, business leaders are tempted to adopt the acquisition path to build a business empire. However, according to Mark Sirower, renowned M&A consultant in BCG, most acquisitions end up in spectacular failures. Many firms fail to see how new
The final stage of the M&A evaluation is determining how much to pay for the Target. The greatest risk of any deal is paying too much. As such it is imperative to determine what is the fair value of the Target and whether the purchase price is fair and attractive
After identifying a suitable market to enter, the next stage of evaluating a potential acquisition target is to conduct a detailed analysis into the target company to determine if it is investment worthy. Generally, we should consider a few criteria: (1) the commercial value of the Target’s business model, (2)
After deciding that M&A is the way forward in terms of achieving the company’s long-term strategic goal, the next step is to decide which market or country to look for potential targets to invest in. As part of a three-stage process, we will first explore how to evaluate the macroeconomic
Many entrepreneurs’ goal is to start a company, grow the business, operate it effectively then eventually sell out their stake for a handsome profit. According to Robert Uhlaner, lead of McKinsey’s global Corporate Finance Practice, many business leaders are not prepared for the intensity of completing an M&A deal. Many
