TRANSAKTION STRATEGY

Why is the transaction strategy so important in the MA process?

The transaction strategy plays a central role in the MA process and is decisive for the success of company takeovers and mergers. Particularly on the buy-side, i.e. in the case of acquisitions by the company itself, the transaction strategy lays the foundation for the entire acquisition planning. In times when markets are changing rapidly and the pressure to consolidate is increasing, the importance of MA transactions is constantly growing. A clearly defined and well thought-out transaction strategy is therefore essential in order to secure the continued existence and further development of a company in the long term.

The transaction strategy defines a company’s approach to carrying out MA transactions. It serves as a roadmap for the entire acquisition process and helps to clearly define the buyer’s overarching goals and priorities. A precisely formulated transaction strategy ensures that the acquisition is not merely an opportunistic decision, but rather a strategically planned measure that is in line with the company’s long-term goals.

Without a sound transaction strategy, MA processes can be inefficient, incur unnecessary costs and ultimately fail to achieve the desired objectives. A clear strategy makes the acquisition process more targeted, minimises risks and significantly increases the likelihood of a successful deal.

Transaction strategy as the first step in the MA process

The transaction strategy should always be the first and decisive step in the M+A process. It sets the guidelines for the acquisition and ensures that every step is aligned with the buyer’s long-term goals. This is particularly important as without a clear strategy, the MA process can quickly get out of hand. An unstructured approach often leads to delays, increased costs and ultimately to acquisitions that fail to achieve their objectives.

A clear transaction strategy, on the other hand, ensures that the entire MA process is structured, that the planned synergies are realised and that the targeted assets can be successfully integrated into the company. The strategy minimises the risks associated with a takeover and maximises the chances of success.

Single transaction vs. M+A acquisition program

The nature of the transaction strategy differs significantly depending on whether the company is planning a single transaction or whether it is pursuing a long-term acquisition programme to achieve its strategic goals.

An acquisition programme is a systematic initiative in which a company specifically plans and carries out several takeovers. The aim is to strengthen its market position and promote sustainable growth through repeated and strategically orientated acquisitions. The motives for such a programme can be market expansion, extending the product portfolio, acquiring technological expertise, consolidating the market or increasing operating efficiency.

Single transactions, on the other hand, focus on achieving a specific goal through a one-off acquisition. They are generally less complex as they concentrate on a single target, but also offer fewer opportunities to realise long-term synergies compared to a comprehensive acquisition programme.

We have supported many of our clients for years in various transactions and inorganic growth measures as part of a jointly developed acquisition programme. Thanks to the resulting in-depth expertise and industry knowledge, we are able to provide even more extensive support and help shape the acquisition process with a strategic vision and overview.

Conclusion

A clearly defined transaction strategy is a key success factor in the MA process. It ensures that takeovers are not just based on opportunism, but are planned in a targeted and strategic manner in order to achieve the company’s long-term goals. A well-founded transaction strategy is particularly important for medium-sized companies, which are increasingly confronted with the challenges of a changing market and growing consolidation pressure.

Companies that opt for inorganic growth can gain access to new markets through successful mergers and acquisitions, strengthen their market position and operate successfully on the market in the long term. The transaction strategy forms the foundation on which the success of MA transactions is built.

As the only specialised buy-side MA consultancy, we support our clients from strategy development through to successful implementation. We provide strategic and operational advice in order to organise the MA process in an efficient and targeted manner and have supported our clients in more than 10 successful acquisitions over many years.