Situation
Due to new regulations in key global markets and the emergence of new substitutes of more cost-effective alternative products, our client, a major player in the Animal Health industry, predicted a long-term shift in consumer demand away from their traditional product offerings. Our client’s Corporate Strategy Group determined that strategic acquisitions would be the best option to decrease time to market with new products. From a short-list of potential target organizations, The Corporate Strategy Group sought Maia’s guidance on which acquisition target offered the best value, complimented existing operations, and would enable future market success.
Methodology
The Maia team developed a research plan that would evaluate each acquisition target on rigorous quantitative and qualitative criteria deemed critical to the acquisition. Maia obtained detailed information on each of these criteria by conducting in-depth primary interviews with knowledgeable market participants across North America, Europe, and APAC.
Analysis
Criteria included strategic vision, gross and net margin by product line, global supply chain footprint, R&D investment priorities, and product pipeline. By quantifying and rating each criteria into a customized “scoring” model, Maia determined which acquisition would bring the greatest shareholder value to our client.
Impact
Maia eliminated multiple acquisition targets based on “deal breakers”. These acquisitions would have had a long-term negative affect on our client’s operations, culture and financial health. Maia identified a strong candidate that would meet the client’s strategic objectives and whose executive leadership would entertain an acquisition under mutually beneficial circumstances.