“Attracting investment: from mergers and acquisitions (M&A) to building business to exit strategies.”
Annaliese Kloé, Klugo CEO, joined a panel of other high-profile executives at the CRN Pipeline to discuss strategies for attracting investments, making investments and buying and selling businesses. The CRN Pipeline is the Australian technology channel’s leading information and networking two day event held in Melbourne and Sydney.
Main areas of conversation included:
- What to look for in an acquisition; return on investment, whether the businesses are complimentary, bringing capability to your business, strategic partnerships and customer benefits.
- Why recurring revenue is important, with a focus on stickiness of customers to keep buying.
- What kills a deal; greediness, lack of personality alignment and not ensuring a win-win.
- Good and bad experiences of M&A.
When significant synergy is created, it ensures a win win. It’s important to have difficult discussions before a merger to take in to account the ‘what if’ scenarios. Another vital point is to take the time to map out the benefits for each organisation involved in the merger. When there is a unified vision, all parties are clear in what their roles are post acquisition.
Make assumptions which can lead to misunderstandings. For example, businesses may be similar, but if they are located in different regions their goals and behaviours may not be aligned. A clear understanding of roles and responsibilities is imperative before a merger. If you’d like to know more about how Klugo can help you streamline your business processes, please get in touch at [email protected] For more information about the CRN Pipeline event, click here.