Mergers and Acquisitions

M & A and Divestitures

Even in the scaled down (not so corporate) arena of sporting and athletic organizations, M & A and divestitures are important to business success, growth drives value creation, and acquisitions provide expansion, when organic growth is limited. Successful deals require careful planning, due diligence, valuation, and skilled negotiation. Also, regularly reviewing and pruning your organization over time, helps sustain capacity to deliver value. We partner with organizations throughout the entire process, to help them take a more strategic, proactive approach.

Target Identification

The best acquirers are proactive, not reactive. They don’t rely on the public market to bring them deals. They are actively engaged in the pursuit, thoughtfully, carefully, and with relevant due diligence. The starting point is identifying potential targets that make sense within the company’s overall business portfolio.

Due Diligence

Buying a business is a calculated risk, what may seem attractive from the outside may look entirely different once an acquirer takes full control. That’s why due diligence is such an important step in the M&A process.  Administered correctly, it helps acquirers minimize risk and gives them confidence that they can actually create sustainable value through the acquisition.

Joint Ventures and Alliances

In many situations, organizations prefer to partner with another organization instead of buying it outright. Joint ventures and alliances allow a company to tap into another organization’s expertise, infrastructure, or customer base without shouldering all of the risk or committing all of the resources.

Exit Strategy and Carve-Outs

Sometimes, a detailed portfolio analysis results in a strategic decision to sell part or all of a business. Divestitures can free up resources, capital, increase management focus on core parts of the company, strengthen the balance sheet, and lead to growth in the remaining business units. Like an acquisition, however, a divestiture must be carefully considered and grounded in a clear exit strategy.

Divestitures

There are three main ways for a company to exit a business or business environment, either through a private integration, a trade sale, or a spin-off. Determining the transaction model that is most appropriate for the asset in question is not a simple task. It involves a series of complex evaluations, analysis and trade-offs.

Sometimes, a detailed portfolio analysis results in a strategic decision to sell part or all of a business. Divestitures can free up resources, capital, increase management focus on core parts of the company, strengthen the balance sheet, and lead to growth in the remaining business units. Like an acquisition, however, a divestiture must be carefully considered and grounded in a clear exit strategy.