30 Mar, 2010 | by
Topics: M&A, Strategy

post-merger-growth

A close friend and colleague of mine, Mehdi Farhadi, recently dropped me a line to say hello.  He simultaneously passed along one of his recent publications and asked if I’d be willing to share it on mybusinessmusings.com.  Without hesitation, I said YES.  You see, Mehdi epitomizes what it means to be a guru in the field of mergers & acquisitions.  While working together in Germany, back in 2008, on a major global transaction we frequently pontificated and debated various M&A concepts.  Strangely enough, it was a field of interest we instantly bonded on.  I vividly recall one particular discussion, which revolved around organic vs. inorganic organizational growth.  It was one of those pleasant conversations where we 100% agreed on all fronts.  Ironically enough, several years later, Mehdi has put together a great piece that took that discussion to a whole new level.  This article will actually appear as a chapter in a book he will be releasing in the near future called “Value in Due Diligence”.  Give it a read as the perspective is invaluable.  I especially love the chart he’s put together as it really tells a significant story.  Enjoy everyone and thanks for sharing Mehdi:

Business leaders strive for growth. Growth is essential to the well-being of companies. According to Ansoff (1957), “just to retain its relative position, a business firm must go through continuous growth and change.” Most companies consider external growth through mergers and acquisitions (M&A) – both asset and share deals – as one of the quickest ways to fulfil business growth objectives. Corporate marriages help companies to sustain profit growth and gain greater market share. continue reading »