Please enable JavaScript.

Coggle requires JavaScript to display documents.

CS-2, The next one is A Portfolio View of corporate transaction., to make…

- - - - environmental
      - legal
        
        a couple of standpoints
        
        investment bank
        
        private equity fund that's making the investment.
        
        hypothetical or theoretical growth opportunities
        
        representing the company for sale
        
        be the management team from the company
        
        insurance bank
        
        macro view
        
        where the capital is coming from
        
        pension funds
      - financial
  - - - nice thing about consulting
        
        independent view
        
        remain prudent in our approach
        
        look at the facts and
        to think about it objectively
        
        remaining calm
- - - - Complementarities or synergies OR resource re-deployment opportunities
        
        e.g.
        
        between M&As
        
        alliance + M&As
      - inter-organizational networks
        
        aggregating
        
        valuable information
        
        industry :arrow_right: company
        
        funneling
    - - Indicates interdependencies over time
        
        Inter-unit resource re-deployment
        
        dubbed acqui-hiring
        
        almost immediately redeployed
        
        e.g.
        
        Google
        
        1 more item...
        
        Real option for future transaction
        
        financial option with a real asset
        
        forming an alliance and making a small equity investment
        
        obtain for itself the option
        
        venture capital arms
        
        invest in start-up companies
        
        Creating & freeing-up redeployable resources
        
        to focus on other
        businesses
        
        Corporate transaction capability
        
        M&A
        
        alliances
        
        divestitures
        
        better and better
        
        Learning and capability augmentation
        
        capability building
        
        one M&A
        
        another acquisition
        
        opportunity to add to or complement
        
        one alliance
- - - - opposite phenomena of M&As
    - - hybrid middle option
        
        create value if managed well
    - - destroy value
      - three-part test
        
        value-creating M&As
        
        a portfolio view of corporate transactions
- - - - In conclusion, there are key points from this module on corporate transactions. Mergers and Acquisitions often destroy value & apply three-part test for value-creating M&As. Divestitures & Strategic alliances create value if managed well. And a portfolio view of corporate transactions is helpful.