5 Strategic Reasons for Value-Creating M&A Transactions

In order to create value in M&A transactions, companies do not have a magic formula during acquisitions. The most important criterion of the agreements stands out as “original strategic logic”.

What is your company’s value creation thesis?

How can the target improve you?

How should you develop the goal?

Both buyer and seller side effects should be considered in agreements. Are you a strategic investor or a financial investor? One point that you must determine while making your transactions is the reason for making the agreement. Getting into a new market or expanding geographically? Develop your strategy based on how you answer the first three questions as you determine the strategy you should focus on for your M&A activities.


M&A Strategy | Identify Strategic Rationale


Buy Side

*Portfolio Strategy    *Core Competency & Industry Analysis

Transaction Readiness

*Target Screening

*Pre-bid advisory /Diligence

Transaction Diligence + Execution

*Deal / Tax Structuring

*Due Diligence

*Regulatory Compliance

Closing + Integration Strategy

*Planning + Implementation

*Valuation of assets for impairment testing

Integration + Transformation

*Integration plan implementation

*Infrastructure Rationalization


Sell Side 

*Portfolio Strategy     *Core Competency & Industry Analysis

Transaction Readiness

*Quality of earning / profit improvement analysis

*Operational due diligence separation financials

Transaction Diligence + Execution

*Buyer contact

*Vendor Due Diligence

*Completion Mechanism

Deal Closing + Separation

*Completion Statement Advisory

* Readiness


Have you determined your company’s value creation thesis in M&A transactions? When developing your M&A strategy, sticking to your core values and staying in the market, not taking too much risk, and staying on track with your original strategy without taking away from your strengths will be key to creating value.


1. Improving the performance of the target company

2. Consolidation to remove excess capacity in an industry

3. Creating market access for products

4. Acquire skills and technologies faster or at lower cost than they can be created in-house

5. Leveraging the industry-specific scalability of the business


Approaching M&A Agreements from the outset from a legal perspective is strategically important to maximize value. Developing an M&A strategy and defining its focus is part of testing and realizing your long-term vision for the business.