The link between Growth Strategy and M&A transactionsThe importance of determining a clear growth strategy and linking this with successful M&A transactions is more crucial than ever. Mergers and acquisitions (M&A) are complex processes which require preparation, analysis and deliberation, hence, the strategic thought process before taking any plunge has never been more critical.
Over the course of this blog, the Cooper Fitch recruitment specialist for Strategy, Consulting and PMO, Nabeel Butt, will delve further into the link between successful M&A transactions that align with business growth strategies, and what senior leaders should be considering before delving into an M&A transaction.
With over 4 years of experience recruiting M&A professionals across both industry and management consulting firms, I have seen the demand and appetite for M&A transactions significantly increase post Covid-19. At the heart of this, is getting the strategic plan correct, as deals may falter if there is no clear connection between M&A strategy and corporate strategy. In fact, the demand from businesses in the GCC for M&A talent, especially from candidates with experience in mature markets is significantly on the rise, with supply outstripping demand.
The development of a strong growth strategy has always been important, however, post Covid-19, businesses have had to consider safeguarding business continuity whilst moving towards building resilience and seizing new opportunities ahead of their competitors. This has resulted in leaders making strategic changes more quickly, with less information. With business expectations changing rapidly, leaders are having to be more agile, being able to re-evaluate and reassess strategies quickly in order to maximise on new market opportunities. However, having the right talent is more critical than ever before, as most successful deals have had at the core of it, specialist talent who have provided sound analysis to tackle as many challenges as quickly as possible. Aligning all the different stakeholders, whether internal or external, can prove to be a challenge, however sticking as closely as possible to your strategic goals and ensuring the purpose and risks have been fully assessed, can add a lot of weight as the M&A cycle advances. Leaders should have a clear plan on what their objectives are for any M&A transactions and not diverge away from the core of their business, based on market noise, critically assessing where the business is in its cycle.
Whether you are looking to re-invent the company, accessing new markets, increasing, protecting or acquiring new products and services, influencing the industry, or a multiple of the mentioned, it is critical to have sound analysis to form key decision making. There are many aspects to consider when you have decided to utilise M&A as an effective tool to execute the strategy in order to achieve your business goals. Some of these aspects could be whether the company can expand its existing business, and would this be better by taking on more market share, or by expanding existing businesses into new countries. Maybe a company could go from being a predominantly B2B based business to increasing its B2C business, i.e how can the company invest and grow its consumer-based business? The analysis and answers to these, ultimately, comes down to the quality of your internal team and external partners, and this should be an essential part of your business strategy from the onset. Often, overworked employees due to a shortage of talent, or the business simply neglecting recruitment as the last cog in their strategy, has resulted in risks being overlooked and deals falling through at the last hurdle. With some transactions taking months, if not years, this can be a very frustrating time and cause internal rifts, resulting in businesses not being able to retain their strongest talent.
Speaking to senior leaders within this space when pressed, one message was loud and clear – the best way to position yourself with as much relevant information came down to the quality of talent within your resources, however, most leaders often neglected this aspect to fully utilise internal resources due to the day-to-day pressures of the role, when an addition would have most certainly eased the pressures of everyone involved.
Once you have considered strategic transactions to be a part of your growth strategy, it is imperative to clearly define what solutions you are looking for. With the help of a robust team, leaders can rely on sound analysis and advance planning, with this being the difference between accelerating growth and the value of a business, especially at a time when target businesses may be available at relatively low valuations.
If you require Nabeels expertise please contact him at firstname.lastname@example.org
Representing the firm since 2021
Recruitment, executive search
Mid to senior-level Strategy & Management Consulting roles
Strategy & Management Consulting into the private and public sector
Nabeel joined Cooper Fitch in 2021 from London where he was working as a consultant at one of the largest international recruitment firms. He joined Cooper Fitch as a Recruitment Consultant and has since achieved promotion to Principal Consultant on the Strategy & Management Consulting team. He specialises in mid-senior level recruitment for top-tier Strategy Houses, Big 4, international and local Consulting Firms, and Commerce & Industry clients. He works closely with a unique talent pool based locally and internationally.
Nabeel started his recruitment career in 2014 bringing a wealth of knowledge and experience to his position at Cooper Fitch. He is a bilingual speaker of both English and Urdu and holds a Bachelor of Arts Law Degree from Middlesex University.