The Perfect M&A Strategy for the Middle Market Company in 4 Actionable Tips

Posted on: February 8th, 2017

Middle Market Company Tips Merging and acquiring is not just about making your company bigger. The right implementation of your M&A strategy can strengthen your business, give it a better footing on the international scene, and make it more resilient and flexible in the face of our ever-changing economic landscape.

How to walk the delicate balance of company growth and maintainable structure? We’ve compiled the following 4 tips for ensuring that your middle market company’s approach to M&A is strong right from the start.

1. Look at the geographical reach of your acquisition
By the time a company grows to middle market size, it’s probably searching for ways to expand past the particular local geographical area in which they started.

This is an area where a strategic merger or acquisition really shines. Taking the U.S. as an example, there is a sharp geographical divide between the business ecosystems on the East and West Coasts.

All it takes is one well-placed merger for a company stuck on one coast to suddenly gain access to a ripe new market on the other side of the country.

2. Are the products and customers complementary?
A strong reason for any acquisition is to gain a wider product line or a wider customer base, allowing you to sell a wider line of products to a wider customer base.

Though cross selling is a very nuanced activity, the ability to offer more services and products gives you the ability to generate more customer spend.

This integration into a one stop shop can strategically re-position you in the market.

3. Are they using technology that you want?
When it comes to M&A, one thing to remember is that you’re not only gaining a company, you’re also gaining the technology they use.

A business that invented or has access to a proprietary innovation, whether physical or digital, can provide an excellent strategic advantage to the right company.

Be aware of up and coming technological advances in your space and position yourself as a potential buyer to those that pique your interest.

This is one area where it just might be worth it to outlay more funds than otherwise planned for, since the rewards have the potential to catapult your company.

4. Do the teams and culture fit?
Achieving synergy is crucial if an acquisition or merger is to succeed. When considering a target company, be honest with yourself about your company culture and theirs, and whether the two complement each other.

There should be a key group of managers that you feel strongly about, such that their involvement will enhance the entire organization post-closing.

Do the companies share ideals? Does the acquisition seem like a ‘natural’ next move? Regardless of the reality of the situation, perception here makes a huge difference. When people expect success, they are likely to find it. But be aware that the corollary is also true.

Whether you’re drawing close to an upcoming merger or are planning your M&A approach for the future, it’s never too soon to begin implementing the above tips.

We here at Attract Capital are ready to help you boost your company’s performance and help it grow intelligently; contact us today for guidance on perfecting your M&A strategy.

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