Printer Friendly

Judith Holley


Acquisition can become a tempting component of corporate growth strategy in times of slow organic growth. However, research consistently indicates that over half of M&A deals fail to create value - basically, more often than not this comes down to a coin toss.

It might be tempting to wait for the right deal to be presented by an external advisor, but by the time the pitch book arrives, it is probably already too late. Given the high stakes and risks associated with M&A, investing senior executives' time, money, and organisational focus to help overcome the various challenges of M&A-driven growth - in advance of any particular deal - must pay for itself many times over.

Although every M&A approach contains elements that are unique to the company or industry and not all businesses aim to become a serial acquirer, the kaizen-like approach of Danaher - from finding to buying to integrating - provides some insights into a panoply of best practices it has refined over the ~400 acquisitions it has made over the past 35 years.

Danaher, an industrial products and hand tool manufacturer, operates more like a holding company that buys and builds companies. Until its latest deal (the acquisition of Pall for US$13.6b in May 2015, twice the size of its largest previous purchase), its focus had been on medium-sized acquisitions that are then systematically exposed to its operational excellence. As a result, its member companies have become B2B category leaders, consistently offering high-quality, reliable products and solutions in what otherwise would be a diverse group of professional, medical, industrial and commercial enterprises. This drove the company's total shareholder return to increase by 70,000% since the early 1980s versus 5,000% for the S&P 500.

So what explains Danaher's ability to deliver successful acquisitive growth in a consistent manner when so many other companies stumble?

1. An investment thesis that takes into account the company's operational foundation, its current context and economic realities. It goes beyond generic strategy statements such as "strengthen our Asian markets" to identify how the company will compete and create value over time e.g. why us? why now? how do we get there?

A good investment thesis should be specific enough to clarify where the company wants to increase its exposure i.e. where it should be pro-actively looking for transactions to avoid 'me too' or off-strategy transactions that are unlikely to add value.

backyard liberty review http://www.jennreviews.com/backyard-liberty
5 inch height gain review http://www.jennreviews.com/5-inch-height-gain
lovetraction lines review http://www.jennreviews.com/lovetraction-lines
forex mentor pro review http://www.jennreviews.com/forex-mentor-pro
defeating diabetes kit review http://www.jennreviews.com/defeating-diabetes-kit
learn more study less review http://www.jennreviews.com/learn-more-study-less
mind secrets exposed 2.0 review http://www.jennreviews.com/mind-secrets-exposed-20
the millionaires brain review http://www.jennreviews.com/the-millionaires-brain
thought elevators eric-taller review http://www.jennreviews.com/thought-elevators-eric-taller
numerologist review http://www.jennreviews.com/mike-madigans-numerologist
survive the end-days review http://www.jennreviews.com/survive-the-end-days
67 steps tai lopez review http://www.jennreviews.com/67-steps-tai-lopez
manifestation miracle review http://www.jennreviews.com/manifestation-miracle
plan my baby review http://www.jennreviews.com/plan-my-baby
pure reiki healing mastery review http://www.jennreviews.com/pure-reiki-healing-mastery
children learning reading review http://www.jennreviews.com/children-learning-reading
the online dog trainer review http://www.jennreviews.com/the-online-dog-trainer
tao of badass review http://www.jennreviews.com/tao-of-badass

Danaher has a rigorous system for identifying and bidding on potential acquisitions. It seeks industrial brands with at least $1 billion in sales and a 5% annual growth rate in an attractive niche market such as environmental control or hand tolls, with no exceptional competitors. There should be a clear potential for margin improvement.

2. Clearly laid-out M&A principles. Danaher has implemented a structured end-to-end process from deal sourcing to integration supported by a short list of principles designed to take time and cost out of the M&A process.

Thanks to such principles, Danaher focuses its attention on the issues that matter most at each stage of the transaction process. For example, during due diligence, it develops early a short list of key commercial deal-breakers and focuses the largest part of its efforts on resolving them. During bidding, it calculates a 'walk away' value to ensure the company does not overpay for the deal.

3. Expertise that generates value for the acquired business - in the case of Danaher, operational improvement. One of Danahers' earliest acquisitions, the brake-maker Jacobs Vehicle Systems, had started to experiment with a Toyota-style lean manufacturing system. It worked, and Danaher began rolling out what came to be known as the Danaher Business System.

Thanks to this systematic process, Danaher can quickly harvest the benefits from business acquisitions through cutting costs and expanding margins. It uses a unique set of continuous productivity improvement tools which has evolved over time to include a large number of business activities e.g. research and development, go-to-market activities, and plant, supply chain and backroom operations.

Guest Book

If you would like, you can add your name and a short message to our Guest Book. Thank you.

Sign the Guest Book

Records 1 - 25 of 1,001+

Denis Arias
Mon, Jan 23, 2017
GPS Tracking devices work by transmitting co-ordinates with a network of satellites that orbit the earth. Pear Track merchandise is rigorously tested before leaving the factory, ensuring the best and trouble free service 'out in the box'. They work equally well and they are often through the same company utilized by the automobile manufacturer.
my blog :: gablota wystawowa ( %url )

Marta
Mon, Jan 23, 2017
Good web page you possess here.
Also visit my blog banque ( %url )

Jenifer
Sun, Jan 22, 2017
Relating to Seven's feedback, the quantity portion of a bra plus size swimsuit cover ups kohl's ( %url ) does relate directly to the bust dimension (that's the place the numbers come from).

Jimmy
Sun, Jan 22, 2017
But instead of getting cut by Mick, we need to ask the following question, “God, can you let me see the areas in my life where you are blessing me”. The bartender, a little surprised lines up the glasses and pours them out, assuming his mates are just round the corner. This will empty your house and give it a better look for potential buyers.
Also visit my homepage: club penguin walkthrough ( %url )

Anja
Sat, Jan 21, 2017
Over the next few years, with fuel prices expected to steadily increase even more, the sale of small cars is set to rocket. A quick guide to car recycling and what happens to the cars ' the most recycled product in the U. Why are people doing this, when they can opt for a brand new luxury car from the nearest dealership.
Feel free to visit my web blog - cannabis ( %url )

Lourdes Fabian
Sat, Jan 21, 2017
Even new tyres do not completely eliminate the risk of aquaplaning or slush planing, but it is possible to control the car as long as you adjust the driving speed to the conditions. The car market down under displays cars that not only differ in their feature but also the price range. Everyone who has ever owned a car will understand what a huge relief that would be in terms of car maintenance.
Here is my page Sri Lanka Hotels ( %url )

Nolan
Fri, Jan 20, 2017
The downside of the car tax rates is the trouble it'll cause to average or lower income people. A quick guide to car recycling and what happens to the cars ' the most recycled product in the U. Phoenix (muscle car) is a car you use in a race mission (San Fierro Hills).
Feel free to visit my weblog :: Heizung Sanitär Braunschweig ( %url )

Consuelo
Fri, Jan 20, 2017
But the greens can at least take comfort in knowing the extent of car recycling. A copy of Project CARS was provided for PC for review. First, in case you were wondering, I did not include the R-Class cars because they do not appear to be very interesting.
Also visit my page Gate Repair Simi Valley ( %url )

Florida McGrowdie
Wed, Jan 18, 2017
Just wanna state that this is extremely helpful, Thanks for taking your time to write this.
Review my web-site; Serplify Review ( %url )

Waylon
Mon, Jan 16, 2017
It's awesome to visit this website and reading the views of all friends about this post, while I am also eager of getting experience.
My weblog: Clash royale gemmes illimite ( %url )

Dwight Pinner
Sun, Jan 15, 2017
But the greens can at least take comfort in knowing the extent of car recycling. And while the MR2 can be a bit difficult with stock tires - grip can break suddenly if you push the car to hard - simply putting upgraded to sport tires makes the car hang on to bends as if velcroed to the track. Phoenix (muscle car) is a car you use in a race mission (San Fierro Hills).
Here is my weblog - jewellery collection ( %url )

Emil
Sun, Jan 15, 2017
in
Feel free to surf to my web site: personal injury attorney baltimore md ( %url )

Kurtis Lavallee
Sun, Jan 15, 2017
Keep up the excellent work and generating the group!
Here is my web-site - bank ( %url )

Cortney
Fri, Jan 13, 2017
Great page, Continue the fantastic job. Appreciate it.
My web blog - online business ( %url )

Maura Balmain
Wed, Jan 11, 2017
Good day! I could have sworn I?ve been to this blog before but after going through some of the posts I realized it?s new to me. Nonetheless, I?m definitely happy I found it and I?ll be bookmarking it and checking back often!
Feel free to visit my webpage; Clash royale gemmes illimite - clashroyalegemmesillimite.blogspot.co.at ( %url ) -

Xiomara Lapsley
Tue, Jan 10, 2017
The main reason for this is that many dealerships are anticipating All New models landing throughout the year. The new technology takes the control of high beam out of the hand of the driver. Looking for something to do with your old cars that seem useless for you.
Here is my page :: news ( %url )

Patricia
Tue, Jan 10, 2017
The downside of the car tax rates is the trouble it'll cause to average or lower income people. Nitro remote control cars are solely for outdoor use. Hobby-grade models are generally more expensive to get into with prices ranging from as low as $100 to well over $500, depending on the model.
Also visit my blog ... late tax returns ( %url )

Tim
Mon, Jan 09, 2017
Merely had to point out Now i'm lucky I happened on your page!
Look into my weblog hack clash of clans ( %url )

Jermaine Dransfield
Sun, Jan 08, 2017
I benefit from checking your web free dating sites no credit card ( %url ). With thanks!

Tia
Sun, Jan 08, 2017
Geçti_imiz aylarda sat__a ç_kard___ xiaomi mi5 k_l_f hepsiburada ( %url ) Mi5 ile büyük bir sat__ rakam_na ula_an firma, küçük revizyonlar yaparak Xiaomi Mi 5s'i piyasaya sürmeyi planl_yor.

Darwin
Sat, Jan 07, 2017
The Super GT has also been seen at The Strip in Las Venturas. Cheap Used Cars Online can be easily found as you just have to do a bit of homework by searching it online. Phoenix (muscle car) is a car you use in a race mission (San Fierro Hills).
my website; Big Krit Type Beat ( %url )

Louella
Sat, Jan 07, 2017
I enjoy browsing your internet site. Many thanks!
Feel free to surf to my web page; ne.jp ( %url )

Evie Backhouse
Sat, Jan 07, 2017
I love perusing your internet site. Thank you so much!
Feel free to visit my web blog: an significant investment ( %url )

Sidney Schott
Fri, Jan 06, 2017
Consequently, the makers have set up specialist programs in addition to repair facilities. A copy of Project CARS was provided for PC for review. Hobby-grade models are generally more expensive to get into with prices ranging from as low as $100 to well over $500, depending on the model.
Also visit my weblog - Hair dresser ( %url )

Shavonne
Thu, Jan 05, 2017
The downside of the car tax rates is the trouble it'll cause to average or lower income people. This includes vehicles like the Mazda 2, Ford Fiesta, and Citreon C1. The federal government provides you a proportionate deduction from your taxes equivalent to the complete valued from your car donation.
Here is my blog ... Seattle chiropractor ( %url )

Records 1 - 25 of 1,001+


If you think this page contains objectionable content or if you have questions and need assistance, please contact our Support Desk toll-free at 1-877-824-8531 between 8am - 6pm (CST), Mon-Fri.