Smarter acquisitions: ten steps to successful deals

Cover......Page 1
Smarter Acquisitions......Page 4
Contents......Page 8
Preface......Page 12
About the authors......Page 14
Publisher's acknowledgements......Page 16
Part 1 The context......Page 18
 Introduction......Page 20
  Drivers of growth......Page 21
  The reasons for the present boom......Page 22
  The outcome......Page 26
  How it works......Page 32
  Implications for corporate acquirers......Page 36
 Why acquisitions fail......Page 42
  Aborted acquisitions......Page 43
  Poor returns from completed acquisitions......Page 48
  Types of transaction......Page 64
  Implications......Page 68
Part 2 The process – the ten steps to successful acquisitions......Page 70
  The four rules......Page 72
  Integration and portfolio acquisitions......Page 79
  Whether to acquire or ally......Page 88
  Integration acquisitions......Page 94
  Portfolio acquisitions......Page 95
  Guidelines......Page 99
  Sources......Page 102
  The approach......Page 105
  Negotiating team......Page 108
  Implementation team......Page 110
  Valuation methodologies......Page 112
  Practical guidelines......Page 119
  Cost of capital......Page 122
 Step 6 Negotiating a good deal......Page 126
  Determining price......Page 127
  Intermediate undertakings......Page 129
  Learning from private equity firms......Page 134
  The logic of due diligence......Page 135
  Financial condition......Page 137
  Specialist matters......Page 141
  Commercial due diligence......Page 144
  Key areas for negotiation......Page 148
  Strategic relevance......Page 155
  Cash versus shares......Page 158
  EPS enhancement strategies (‘bootstrapping’)......Page 160
  Acquisition bank finance......Page 162
 Step 10 Implementation and integration......Page 164
  Lessons from the front......Page 165
  Avoiding failure......Page 176
  Ensuring value creation......Page 178
  Managing a tight process......Page 179
  Applying good parenting......Page 180
Appendix A  AT&T’s acquisition of BellSouth......Page 182
Appendix B  Imperial Group’s acquisition of Altadis......Page 186
Endnotes......Page 190
Index......Page 194