A Balanced, 360° Approach to Due Diligence
According to Harvard Business Review, between 70 and 90 percent of all mergers and acquisitions fail. And if we look at the rate of consolidation in agriculture alone, that statistic can be downright depressing. If these transactions were solely about the financials, the return might be more straight-forward and realized more often, but that doesn’t seem to be the case. So, what’s the secret to success for some of the mergers and acquisitions that go so well? At CLUTCH, we believe it’s in the due diligence that happens before the merger or acquisition – much like what we did for two equipment retailers in the Upper Midwest.
For our mergers and acquisitions clients, CLUTCH conducts a full-picture, 360° review of both parties to determine risks, opportunities, threats and efficiencies. The two equipment retailers were closely analyzed to fully understand the compatibility between the two, including:
- Product portfolios, including an assessment of portfolio expansion and product cannibalization potential
- Team cultures, and how the different cultures will compete or complement each other
- Supply and distribution chains, and where efficiencies can be found
- Sales teams assessment, including sales goals, approaches, geographies and incentives
- Brand positioning, competing or complementary positioning, and message alignment
And of course, as the impetus behind many mergers and acquisitions, a full legal and financial analysis was done in tandem with the CLUTCH due diligence review.
Balancing opportunities with risks is needed in any business decision, perhaps even more so with a merger or acquisition. At CLUTCH, we spend the necessary time digging into the nuts and bolts of each party to fully assess how combining two teams can be a positive experience for employees, leadership and customers.
CLUTCH is a hybrid consultancy and agency focused on helping B2B businesses find and realize their peak potential. As business acceleration experts, everything the firm does is designed to drive the growth of revenue and opportunity. The firm combines a mix of strategic consulting, marketing communications and lead generation, and learning and development services to consistently produce business results for clients.
For more information visit clutchperformance.com.