Developing a Successful Acquisition Strategy

Philadelphia associate Vanessa Tabler has written an article for the Philadelphia chapter of the Association for Corporate Growth (ACG), recapping a symposium of the strategic finance leadership of Triumph Group, Oxford Finance LLC, Janney Montgomery Scott, Susquehanna Private Capital and Frontline Education on the topic of “Developing a Successful Acquisition Strategy.”

The panel of M&A executives gave frank and insightful answers to the overarching question of “What does it takes to succeed in acquisitions today?” In just the past five years, the supply of capital and the number of private equity firms in the market have increased dramatically, resulting in heightened competition to find deals and realize value. To remain competitive, lenders and investors alike are adjusting their strategies to adapt to the market. For example, lenders on midmarket transactions began permitting up to 25 percent to be added to EBITDA from corporate synergies and other adjustments.

For investors, planning integration has become key, both before and after an acquisition. Many lenders expect to see synergies realized within 12 months after closing. To achieve this, it is important for investors to adhere to their integration and strategic plans for their targets. The panelists agreed that the greatest aids to success are good data, motivated sellers and highly experienced attorneys who focus their practices on M&A.