--- title: "Making M&A Work: How to Align Corporate Strategy and Acquisitions" description: Learn how to develop a successful M&A strategy that aligns with your company's long-term growth plan image: https://library.navima.io/hs-fs/hubfs/shutterstock_248475694.jpg?width=4243&quality=high --- [![NavimaLogoLarge-DarkBlueOnWhiteBG-1](https://library.navima.io/hs-fs/hubfs/NavimaLogoLarge-DarkBlueOnWhiteBG-1.jpg?quality=high)](https://www.navima.io) - [HOME](https://www.navima.io) - PLATFORM ## The Navima Platform Collaborate in a highly secure cloud platform purpose-built for M&A ### [Platform Overview](https://www.navima.io/platform-overview) ### [Workspaces](https://www.navima.io/workspaces) ### [Playbooks](https://www.navima.io/playbooks) ### [Documents](https://www.navima.io/documents) ### [Reporting](https://www.navima.io/reporting) ### [Project Management](https://www.navima.io/project-management) ### [Knowledge Management](https://www.navima.io/knowledge-management) ### [Collaboration](https://www.navima.io/collaboration) - [RESOURCES](https://library.navima.io/resources) [Schedule Demo](https://www.navima.io/schedule-a-demo) Blog # Making M&A Work: How to Align Corporate Strategy and Acquisitions Learn how to develop a successful M&A strategy that aligns with your company's long-term growth plan [Tom Allen](https://library.navima.io/resources/author/tom-allen) Feb 15, 2023 [mailto:?subject=Check%20out%20https://library.navima.io/resources/making-ma-work-how-to-align-corporate-strategy-and-acquisitions&utm_medium=social&utm_source=email%20&body=Check%20out%20https://library.navima.io/resources/making-ma-work-how-to-align-corporate-strategy-and-acquisitions&utm_medium=social&utm_source=email](mailto:?subject=Check%20out%20https://library.navima.io/resources/making-ma-work-how-to-align-corporate-strategy-and-acquisitions&utm_medium=social&utm_source=email%20&body=Check%20out%20https://library.navima.io/resources/making-ma-work-how-to-align-corporate-strategy-and-acquisitions&utm_medium=social&utm_source=email) --- > M&A strategy is about having a solid understanding of what makes your company successful today and the steps that can be taken to improve into the future. > > Successful acquisitions must start with a solid rationale which ensures (i) the deal is tied to the company’s overall strategy and (ii) that it will help advance the company along its defined strategic path. [Research conducted by McKinsey](https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-one-approach-to-m-and-a-is-more-likely-to-create-value-than-all-others) suggests that successful acquisitions align closely with an organisation’s long-term growth strategy. Organisations that can demonstrate an ability to accelerate revenue growth via acquisitions typically, do not treat deals as opportunistic “events” or as something that “happens” to a company. Rather, they regard M&A as a core competency that is essential for creating value – while linking this to overall strategy. ### **The development of an M&A strategy should begin with asking several key questions: ** *1.   Why, where and how should we use M&A to help achieve the corporate strategy.* *2.   What is our value creation thesis?* *3.   What are our desired strategic outcomes of M&A – see Consider Strategic Objectives, below.* *4.   How does the target make us better?* *5.   How can we make the target better?* Answering these questions will likely prompt additional questions around specific company strengths and capabilities, competitive advantage, resource availability and other inputs to effective deal making, etc. (see Strategic Review, below). ### **Strategic Review** A strategic review can help identify gaps in your company’s ambitions and opportunities for M&A to fill these gaps. It can also ensure your company’s M&A strategy focuses on market trends, factors in various types of perceived market uncertainty and – to the extent possible – account for the likely actions/reactions of competitors. The rigorous analysis conducted as part of a strategic review will enable you to understand your company’s internal strengths and external market opportunities over the next several years. This analysis will help to develop a set of prioritised options, such as an acquisition or divestment, to achieve the strategic objectives. ### **A strategic review can be carried out via SWOT analysis** As part of a strategic review, the leadership team should also consider any M&A constraints imposed (by, for instance, the CFO or Steering Committee) such as the size of deals that can be transacted, which will have an impact on the pool of potential M&A targets.   ### **Consider Strategic Objectives** As challenges and opportunities for growth are defined, options to defend, grow, fix or exit a company can be assessed and prioritised based on your company’s goals, capabilities and financial position, etc. Generally, companies can choose from a number of key strategic objectives such as: 📈 Organic growth: Increase company breadth or depth via long-term revenue growth, market share capture, margin enhancement or improved asset utilisation. 🏅 Talent: Acquire necessary talent to remain competitive. 🔬 R&D: Capture intellectual property, know-how/skills. 💼 Portfolio Management: Manage a portfolio of businesses to maximise existing and evolving capabilities, reduce risk, or reposition a business. 🤺 Defensive action: Ward off potential take-over attempts or fix existing business/operational problems. 🧪 Opportunistic posture: Capitalise on a unique market/competitive opportunity or a developing business formula. 🌎 Market: Expand market share and revenue across international markets + capitalise on another county’s comparative advantage in supply a product/service. 🎯 Leverage: Capture unique synergies between acquirer and target capabilities. 📑 Transformation: Create an entirely new value proposition or business model. 📊 Efficiency: Get leaner, improve margins. 🤼 Scale & Scope: Get bigger, eliminate a competitor. ### **Tips** 1. Revisit the M&A strategy conversation on an on-going basis and continually update your M&A themes/areas of focus. 2. Consider how you might need to modify corporate and M&A strategies and initiatives because of economic shocks – e.g., pandemic, inflation, supply chain, etc.  3. Ensure company-wide buy-in – top level management should define the strategy but people on departments impacted by M&A should have input. 4.  Keep teams updated and seek to gain engagement and support. ### **Watch outs** 1. Do not make M&A decisions based on gut-instinct or the actions of one person acting alone. M&A should be a team activity. 2.  A corporate strategy review is critical for success; however, it is often neglected by executives under pressure to achieve short-term results. Two common causes for acquisition failures is a lack of insight regarding a company's core competencies and limitations as well as changing market conditions – and therefore, doing the wrong deals. About the Author Tom is the CEO of Navima. Prior to Navima, Tom worked at 2 M&A boutiques (leading acquisitions, divestments, strategy and venture projects) and was Head of M&A & Corporate Development for a fast-growth, VC backed SaaS company. Tom has supported companies around the world including Shell, Unilever, Philips and the Big Four with improving their M&A process and leading the development of playbooks.  [Blog](https://library.navima.io/resources/tag/blog) ## Similar posts Blog ### [10 Essential Principles for High-Impact M&A Integration](https://library.navima.io/resources/10-essential-principles-for-high-impact-ma_integration) Unlock the secrets of capturing value from M&A with an overview of foundational principles for achieving high impact integration Tom Allen Jun 26, 2023 Blog ### [ESG Essentials in M&A: What You Need to Know](https://library.navima.io/resources/esg-essentials-in-ma-what-you-need-to-know) Dive into the rise of ESG in M&A, uncovering its impact on deal-making, how it's redefining due diligence, risk management & shaping corporate... Tom Allen Sep 29, 2023 Blog ### [How to Identify the Best Acquisition Targets: A Guide to Target Screening in M&A](https://library.navima.io/resources/how-to-identify-the-best-acquisition-targets-a-guide-to-target-screening-in-ma) Proper target screening lays the foundation for successful deal execution and integration. Here's what you need to know. 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