The Gaffin Group’s perspective on Corporate Development is forged through deep experience on several sides of M&A transactions across the last 20 years. Our insights support the thesis that effective Corporate Development functions cannot be isolated from strategy and implementation efforts. Our research indicates that much of the frustration in M&A success rates can be traced back to overly tactical, ad hoc, and reactive M&A programs.
Best in class Corporate Development teams have earned a seat at the strategy table and use that visibility throughout the M&A process – taking company and business unit strategy through to development of a search and acquisition program. Moreover, this allows for proactive, outward looking M&A platforms as opposed to reactive, ad hoc target pursuits. – Mark Gaffin, Founder of The Gaffin Group
A thoughtful, well-articulated strategy should drive a robust, well-articulated investment thesis. That investment thesis underpins search, evaluation, negotiation, and implementation planning efforts. Importantly, these efforts are not sequential but are iterative and concurrent. The best platforms seek and incorporate unbiased data and information that efficiently flows though feedback and learning loops to be effectively incorporated near real-time into the M&A process.
Too often we hear about dismal results from M&A efforts. Widely discussed research suggests a success rate of around 50% – roughly the same as looking at a target and flipping a coin. Enhanced Corporate Development is so much better than that. To change results, change the approach, change the skills, and change the process — invest effectively, don’t spend more to buy a bigger coin to flip. – Mark Gaffin, Founder of The Gaffin Group
The Gaffin Group helps clients across the M&A spectrum to develop strong, deep Corporate Development functions that provide effective market intelligence on trends and opportunities in evolving markets – and acquisitions that meet the strategic outcomes desired by the company.
Where we can help:
- Corporate strategy development
- Investment thesis articulation – actionable and measurable
- Acquisition program design – focused and strategy-based
- Target search and identification
- Due diligence program design and execution
- Synergy identification – source, magnitude, timing, etc.
- Valuation and analytics – target specific, industry analytics, risks to value.
- Negotiations and internal buy-in
- Post-merger integration planning
Companies are increasingly using M&A to build capabilities, to enter new markets, and to diversify portfolios. The Gaffin Group can help your company lift its Corporate Development programs to meet the challenges of increased complexity and competition.