As today’s business environment continues to evolve, so does the practice of mergers and acquisitions (M&A). To meet dynamic challenges, a new term is being talked about: agile M&A. Agile M&A has become increasingly popular among large companies due to its ability to adjust strategies quickly based on changing circumstances. Nevertheless, for those outside of the corporate world, it can be difficult to understand what exactly “agile M&A” means in practical terms and why organizations are turning towards this type of approach. In this article, Cody Biggs breaks down agile M&A principles and provides guidance on how your organization can benefit from this emerging trend.
Cody Biggs Explains Agile M&A
According to Cody Biggs, Agile M&A, also known as agile mergers and acquisitions, is a model of corporate strategy where companies make rapid decisions to acquire or merge with other business entities. This approach allows for flexibility and agility in the ever-changing environment that surrounds modern businesses. By making fast decisions when opportunities arise, organizations are better able to stay competitive in the market and maximize profits.
The Agile M&A model relies on two main strategies: proactive deal evaluation and rapid due diligence implementation. The proactive deal evaluation looks at external factors such as market conditions, economic situations, customer trends, and competitor actions before deciding whether or not an acquisition or merger is worth pursuing. Rapid due diligence implementation follows this initial evaluation by quickly assessing the target company’s financial health, cultural fit, and other internal factors.
According to Cody Biggs, Agile M&A can lead to greater profits, cost savings, increased market share, and innovation. According to a study by Deloitte, companies with an agile M&A strategy are three times more likely to achieve success than those that follow traditional strategies. This is because they are able to act quickly on opportunities in order to stay competitive in the marketplace and maximize returns.
One real-life example of agile M&A is Microsoft’s acquisition of LinkedIn for $26 billion in 2016. Microsoft saw an opportunity to expand its reach into the professional networking space through this merger and acted swiftly. The move was successful: within two years of the acquisition, Microsoft had already achieved a return on its investment, and the company’s stock price had increased by over 40%.
Cody Biggs’s Concluding Thoughts
Agile M&A provides a powerful tool for navigating turbulent and uncertain market environments, says Cody Biggs. Its dynamic nature allows for rapid change, collaboration, and innovation to keep up with rapidly changing conditions. With the help of agile techniques, businesses can find new ways to evaluate, integrate and manage acquisition opportunities more efficiently and effectively. This method of acquisition has many benefits that help create greater value through a faster time-to-market, improved customer satisfaction, and cost savings. Despite the challenges involved in implementing Agile M&A, organizations that have embraced it have seen an immediate return on their investments. When used strategically and combined with traditional M&A processes, Agile M&A can be an effective approach to finding success in highly competitive markets.