Based on Brockmann & Company’s experience with mergers and acquisitions, we are in a strong position to voice an independent assessment of the impacts of industry impacting events.

Here are the dimensions of a deal that we will analyze:

Strategic fit [x/5]. Does the deal really make sense in terms of the strategic impacts it could make on the businesses at hand. Sometimes 1+1 does equal 3, and sometimes 1+1 does equal 1.5. High scores come from combining two incomplete product categories to form a portfolio (a la Excel, Word and PPT into Microsoft Office) or to address a new, high growth market – equipment vendor buys a hosted service provider.

Timing [x/5]. Acquisition timing is predicated on the untapped growth potential. However, buying a new company too soon means that the technology is not ripe; it is not customer validated and the risk of failure higher than than desirable. On the other hand, buying a late-stage company, hoping to generate growth from slamming together two big operations means that this ain’t a growth plan. Low marks for either of these two extremes.

Customer demand [x/5]. Where do customers fit in this project? Are they looking for solutions here?

Potential [x/5]. This is really about execution risk. How can it pay off for the participants?

Overall score is the sum of Fit, Timing, Customers and Potential.

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