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| Consulting |
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| FMTS Consulting is primarily focused on M & A, Due Diligence and Business Financial Modeling. |
| DEAL MAKING: |
Deal making should be an extension of a company's growth strategy. Deals fuel a company's growth under two circumstances: first, when they strengthen a company's current core business in a stable industry; second, when they provide a means for a company to expand into highly related businesses that reinforce the core.
A clear understanding of a company's basis of competition in its industry should guide deal-making decisions. In simple terms, a basis of competition is how a company makes money, and how it competes. In most industries, it represents the single most important factor for winning.
Companies routinely make acquisitions that are in conflict with their fundamental basis of competition. Successful acquirers, however, use M&A programs either to buttress their basis of competition or to lead or keep up with their industry as it shifts to a different basis of competition.
FMTS has deep experience in helping companies set their growth strategy. We help companies build their M&A programs as a vector of that growth strategy. As key elements of the process we work with companies to: |
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- Articulate growth aspirations and understand the basis of competition
- Decide where to invest and where to divest
- Prioritize growth opportunities-organic, M&A, joint ventures/partnerships
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| M & A Screening |
Screening starts with a clearly articulated M&A strategy, which is an extension of a company's overall growth strategy. In its M&A strategy, a company should define the role an acquisition needs to play, before it looks at targets. Companies should screen candidates based on the why and the how, with a focused search that not only identifies the right targets but also gives a head start on the strategic due diligence process.
Every deal a company proposes to do-big or small, strategic or tactical-should start with an investment thesis, a clear statement of how that particular deal will create value for the company. The problem is, less than 30% of acquiring executives start out with an investment thesis that stands the test of time, according to our research. |
FMTS experience in acquisition screening.
FMTS has screened over 3,000 companies for its financial and corporate buyer clients. The screening process typically follows five steps: |
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- Generate full list of acquisition targets
- Screen targets based on criteria set in the M&A strategy
- Develop detailed profile, investment thesis and valuation for top-priority targets
- Build M&A road map that spells out sequence and timing
- Devise plan to approach targets and develop relationships with them
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