We never pretend to know more than our clients do about their industries, operations, or internal processes.
We do, however, use proven methodologies, frameworks, and tactics used by successful corporations, and our considerable hands-on experience, to partner with our clients to formulate & implement valuation maximizing solutions.
As experienced Corporate Development and buyside M&A advisors that have consummated extensive Strategic Corporate acquisitions across different industries and deal sizes, we are familiar with the myriad of challenges and potential pitfalls that exist in undertaking a successful strategic acquisition; from clearly understanding and articulating the strategic rationale for making an acquisition, the “Investment Thesis,” to clearly identifying the Critical Resources & Capabilities required for strategy execution; and from formulating an aggressive, risk-based, and timebound Integration plan to allocating unambiguous and timebound Value Realization Ownership to operating executives. All of this while maintaining unflinching Purchase Price Discipline to ensure an optimum risk-adjusted return to shareholder.
The decision to undertake a transformative, time-consuming and inherently risky business acquisition, whether to grow/protect the company’s Core operations or to expand into promising new high-growth Adjacent sectors, should only be taken after exhaustive deliberations involving unbiased fact-based analyses and a clear-eyed strategic evaluation of external macro forces, sector dynamics, and competitor/consumer trends. As your trusted advisor, we leverage our large-company experience, proprietary playbooks, and partner ecosystem to ensure your success throughout the acquisition and shareholder value creation path.
At Athena Associates, our overarching belief is that all corporate development actions must, by necessity, flow directly from, and fully support, the organization’s growth and value-creation strategy.
Within this service area, we partner with management to initially review, or reformulate if necessary, the company’s strategy and then identify and quantify the key resources and capabilities required to effectively and efficiently implement the strategy.
Once the critical resources and capabilities have been clearly identified, then we work with management to determine the appropriate channel for acquiring the necessary resources and capabilities. This involves a methodical and disciplined Build-Buy-Partner exercise that takes into account several variables such as the scarcity and criticality of the identified resources and capabilities.
The final step of our Corporate Development offering is to quantify the external capital required to implement the clients’ selected strategy and, critically, determine the optimal form of such capital in terms of debt or equity, as well as identify viable capital providers.
If the decision is taken to Buy the necessary resource or capability, then Athena Associates is able to provide our clients with a full Mergers & Acquisitions service offering.
Mergers & Acquisitions
We advocate M&A transactions as a fundamental value-creation tool in the right circumstances to drive inorganic growth or restructure your company through an acquisition or divestiture. Our M&A service offering is beneficial in the following situations:
Where we have already provided our Corporate Development service and, together with management, have identified the type of company or asset to acquire
Where the client has already decided to follow an acquisitive growth strategy
Where the client has decided to sell all or a part of the company to either monetize built-up equity or withdraw from a particular industry or market
There are many complex and interdependent stages involved in preparing for and successfully executing an acquisition/divestiture/sale transaction. This stage starts by formulating a coherent, realistic, and time-bound M&A strategy with an associated tactical plan.
The intention is not simply to purchase a target company with a particular product or service offering but, rather, selecting a target company that offers the specific asset, IP, technology, know-how, or customer market (among others) that is critical to implementation of the company’s strategy. The M&A strategy formulation involves several critical steps:
Clearly articulate the strategic and financial benefits of obtaining the needed resources and capabilities through an external acquisition by preparing an in-depth and defensible investment thesis.
Outline the high-level target search and selection criteria such as industry sub-sector, company size (revenue, earnings, etc.), customer base, product offering, etc.
Using our network of investment banks, private equity firms, business brokers and M&A sale platforms, search for and select a number of suitable targets for high-level discussion and indication of interest.
Value the selected target company and structure a mutually beneficial transaction that evenly allocates the transaction risk between the buyer and seller. At this stage, acquisition or sale pricing discipline is critical with respect to the projected risk/return profile of the transaction.