Mergers, Acquisitions and Consolidation
Mergers, acquisitions and industry consolidation always involve multiple parties. Moreover, even players who are not directly participating in the transaction can be substantially affected by these significant market changes. While operational synergies are the ultimate objective, and financial due diligence tends to be the focus leading up to the transaction, it is also critical to anticipate competitor and government reactions and avoid placing disproportionate attention on internal perspectives and quantitative analysis.
A game theory analysis is particularly useful at early stages of consolidation or M&A planning. Open Options has helped corporations anticipate competitors’ reactions when considering acquisitions and divestitures. Open Options has also helped companies influence industry consolidation to optimize their eventual position.
Below is a selected list of some of our success stories, in helping our clients manage their mergers, acquisitions and consolidation issues. Please contact us to learn more about our process and review a relevant case study.
Industry Consolidation – “Feeding Frenzy” Show more
A large technology company was facing a rapidly evolving market. Large, well-capitalized companies were making significant strategic investments to shape the industry and several smaller, weaker players were consolidating or being acquired. All this was happening in the context of current weak sales and an expected technological shift in the following two years.
Mergers & Acquisitions – “Snatched from the Wolf’s Jaws” Show more
A mid-tier company in a consolidating industry faced powerful predators. Likely acquirers included three major competitors and several outside firms, and no smaller firms were available for the Client to buy in order to inhibit acquirers. The solution was a big win for the client, and a surprise to the industry.
Industry Consolidation – “Dance Partners” Show more
The media and entertainment industry was consolidating, with smaller companies merging or being bought by larger companies. The Client had established itself as a niche leader and was concerned about how things would play out.
Open Options has experience in the following aspects of mergers, acquisitions and consolidation:
- M&A Auctions
- Seeking to be acquired
- Defending from takeover
- Seeking to takeover
- Major asset sales and spin-offs
- Key asset purchases
- Asset monetization
- Accelerating partner approval
- Effects of competitor vertical integration