Turning an M&A Project into a Strategic Financial Partnership

Finding entrepreneurial balance

How Mantu is taking an M&A project between a large corporate and entrepreneurs towards a financial strategic partnership

Context

In a digital-first world where e-commerce, IOT, mobile capacity, big data, and other fast-moving digital advances are up-ending traditional practices at an increasing rate, certain businesses are now turning towards M&A and corporate venturing to manage market disruption caused by startup players, mostly innovation driven. 

However, traditional M&As were transactional and static; a dynamic approach is now required if both the acquiring and acquired companies are to get the most from the partnership

Whether done for the purposes of diversification or to enter new markets, M&As can enhance the capabilities of the acquiring company; the people, processes, infrastructure and culture being absorbed strengthens and future-proofs operations against disruption while also promoting internal innovation. 

Amongst the largest retailers in the world, our client is a conglomerate of supermarkets.

Shaping tomorrow’s business

Our client had identified two startup organizations for a potential merger. They opted to pursue external growth for several reasons, including consolidating their market position, digitalizing parts of their operations, and encourage innovation by connecting with startups. 

As this was a major opportunity for external growth, the client required guidance on how to approach the acquisition of new entities in terms of due diligence, structure, and the integration of the newly acquired businesses into its own organization.

 Our client wished to preserve the integrity of the acquired business’ culture, however; integration, rather than assimilation, was their key objective.

Finding the best deal structure for our clients

Choosing the right partner to factor in the human aspect of the operation was a crucial step for our client; customer and employee expectations were high on its list of priorities, as was expanding its customer offering. 

Incorporating elements of the acquired companies into their business would result in an enhanced level of service, but care had to be taken to ensure that the acquired businesses were well integrated in terms of workforce, process, and methodology. 

This partner would have two key goals: build a roadmap for the effective union of the companies in terms of startup culture, organization, operations, etc., and manage how these factors would combine to redefine the future of all parties’ operations. Enabling the entrepreneurs behind the acquired startups to continue operating independently after the amalgamation was key, as was planning how to incorporate an innovative start-up culture into the client’s large organization. 

Mantu has entrepreneurship in its DNA. We provide a platform for entrepreneurs, and understand how intrinsic their identity, autonomy, and founding purpose  are to growth and success. It was therefore a priority that these elements were integrated fully into the subsequent union.

A 4-step project to transform our client’s business

What changes with this partnership

Our client’s customers now have a significantly enhanced experience: they can access a much wider range of products and services due to the capabilities of the acquired companies.  Increased operational capabilities resulted from the partnership, as well as efficiencies due to the number of synergies identified.  

By paying particular attention to the identity, autonomy, and founding purpose of the acquired entities, Mantu was able to successfully integrate not only their services but also their culture with our client’s existing structure.

The support and expertise of Mantu’s financial experts created the necessary conditions for the long-term development and sustainability of our client’s operations following the project. Our focus and dedication to the alignment of all parties, the economical requirements, risk management, and the maintenance of an entrepreneurial ethos ensured our client was supported far beyond the classic M&A approach.

Key Highlights

Entrepreneurial balance has been achieved throughout the partnership

Technological capabilities are maximized through technology stack integration

Increased overall efficiency due to change management and a conversation plan

Significant upgrade in our client’s customer experience

Retained the culture and ethos of the acquired businesses

About our ‘Disruption & Growth’ practice

We’re anticipating disruption and creating new growth drivers for businesses, as well as transforming staffing and production models through new talent marketplace solutions. Through our dedicated brands, we build and nurture talent communities across the world featuring experts in every sector, capable of matching every project requirement

About our Amaris Consulting brand

Amaris Consulting is an independent technology consulting firm providing guidance and solutions to businesses. It gathers more than 7,000 people from 95 different nationalities, spread across 5 continents and more than 60 countries.

With more than 1,000 clients across the globe, we have been rolling out solutions in major projects for over a decade. Our experts engage across all sectors ranging from financial services and transportation, to healthcare and technology.

About our Pixel Alliance brand

Pixel Alliance is a young collective of creatives, developers and digital experts. These digital craftsmen create holistic worlds and build bridges between the physical and virtual dimensions.

More Insights For You