If you’re looking for an effective and efficient process to maximize value from mergers and acquisitions, then agile M&A should be your first choice. Agile M&A goes beyond traditional merger & acquisition strategies by incorporating innovative thinking, a proactive collaboration between stakeholders, and agile processes such as scrum/sprinting. As a result, businesses can use this methodology to increase the rate of successful deals while minimizing risk and ensuring that values are aligned across multiple organizations. In this blog post, Cody Biggs discusses the benefits of agile M&A in further detail and examines ways it can help add value during an M&A transaction.
Cody Biggs Lists Ways Agile M&A Adds Value
Agile M&A, as per Cody Biggs, is an approach that can add great value to mergers and acquisitions. This methodology focuses on quick implementation, speedy decision-making, and organizational cooperation. Here are some of the key ways it adds value:
1. Quick Implementation: Agile M&A involves shorter planning periods and faster execution, which minimizes disruption to operations and reduces costs associated with errors or delays. This leads to quicker integration of the two organizations’ processes and systems, enabling them to benefit from identified synergies sooner rather than later. Additionally, by moving quickly through each step in a merger or acquisition process—such as due diligence, negotiation, and integration—the risk of market changes diminishing potential benefits is reduced.
2. Streamlined Decision-Making: In Agile M&A, decisions must be made with the input of stakeholders from both sides of the transaction and in a timely manner. This leads to fewer layers of decision-making, shorter timeframes for making decisions, and increased collaboration between teams. As a result, it is much easier to make well-informed decisions quickly, which ultimately maximizes value for everyone involved.
3. Improved Organizational Cooperation: The agile approach encourages open communication between teams throughout the process, says Cody Biggs. By having daily interactions between parties, there is a better understanding of each other’s goals and objectives, creating an environment that fosters mutual trust and respect. This greatly improves cooperation overall which reduces potential conflicts and helps both organizations work toward common goals.
Cody Biggs’s Concluding Thoughts
According to Cody Biggs, Agile M&A adds value by providing quick implementation of deals, streamlined decision-making processes, and improved organizational cooperation during the process. Data from a recent survey conducted by KPMG revealed that companies who used Agile M&A experienced 66% fewer integration delays and 71% quicker time to market compared to those who did not use this approach. For example, when software giant Adobe acquired Magento in 2018, they implemented an agile approach which enabled them to quickly close the deal and get their products integrated into the new platform within six months. This allowed customers to more easily access Adobe’s services and generated great value for both parties involved.