Greater critical mass
required to continue to win share.
SensorCo is a large public manufacturer of a broad range of products
for respiratory care.
SensorCo's CEO was interested in acquisitions in order to build critical
mass in the marketplace.
As technology matured, volume discounts and bundling were becoming increasingly important.
A key criteria was to leverage a strong salesforce across multiple customer groups.
Only pursue acquisition
targets with good strategic fit.
Stop reacting to opportunistic proposals from
investment bankers.
Internal acquisition evaluation had been time consuming and frustrating due to mostly
react-mode process.
There was little management time available to systematically identify and choose
important targets, and there were apparently hundreds of potential compaines that appeared to meet
at least some evaluation criteria.
While the CEO envisioned multiple possible acquisitions, he did not want internal
resources distracted from running the core business.
The CEO hired Quattro to devise a comprehensive, proactive acquisition strategy.
Acquisition Hunt.
Worked with management and Board to clearly define a set of acquisition criteria
and initial range of reasonable acquisition choices given strategy goals.
Led a team to exhaustively identify and
do preliminary assessment of all potential candidates.
Derived a first target list. (Strategic Pruning)
Conducted in-depth customer, competitor
and acquisition candidate analysis to refine targets into
short list.
(Opportunity Targeting)
Worked with CEO to implement a campaign to approach those companies.
Numerous Successful Acquisitions.
Large Increase in Shareholder Value
SensorCo bought and integrated several
acquisitions over a period of four years.
Company market value more than doubled, and company was later bought by a larger medical conglomerate.
