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(3 (Three-Part Test)), Key Success Practices, Real-World Example: John…
3
Three-Part Test
Synergies 🔍
Price Discipline 💵
Strong Post Merger Plan🤝
- Integration team from both sides
- Focus on aligning culture, systems, and people.
- Clear roles & leadership
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- Real-World Example: John Deere
├─ Entered new markets (e.g., road building)
├─ Acquired new tech (e.g., GPS, AI)
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Example: John Deere
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Geographical (e.g., Wirtgen for road building)
Technological (e.g., Blue River AI, GPS tech)
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Entering new markets (e.g., Wirtgen for road building)
Acquiring new tech (e.g., GPS, Blue River AI)
Strategic logic: Acquisitions make sense when ventures are too distant from core capabilities to build internally
Used M&A for tech & geographic expansion (AI, GPS)
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[✅ Synergies
- More value together
- Consider if alliance could do the same
✅ Price Discipline
- Don’t overpay
- Have a walk-away price
✅ Post-Merger Plan
- Real strategy, not just talk
- Involve managers responsible for delivery
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- 📊Identify & Quantify Synergies
- Objective Evaluation
- financial flexibility
- Empower Both Sides' Leaders
- Managerial Diligence🧠
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Synergies
Right Price
Post-Merger Plan
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