Strategic Planning is the long-term vision of your company’s goals, objectives, and targets. This is the medium where questions of the future are asked. Where do we see ourselves in 5 or 10 years from now? Do we want to launch new product(s)? Do we want to diversify and acquire another business? How are we going to do this? How will it be funded? A sound Strategic Plan is a must for any business as it draws its roadmap into the future. Described below are three common elements in many Strategic Plans: Mergers & Acquisitions (M&A), Internal Growth, and consideration for future sale of the business.
Mergers & Acquisitions
Corporate growth through Mergers & Acquisitions has become a popular Strategic Plan for quick expansion. Whether by Merger or Acquisition, planning is essential before, during, and after the event. It is always important for a company to position itself regarding opportunities that may arise. By having strong capital and valuation, both Tangible and Intangible Assets are vital to play successfully in this arena.
Companies targeted for M&A activity are generally placed into three categories. First, direct competitors, where by the Acquisition will give the acquiring company additional market share. Second, company’s within an industry gaining a different product line or technology. The Acquisition of one of these companies expands the breath of offerings to the customer along with additional market share. Finally, a company may wish to diversify by going outside of its core industry. This company may be a leader in its industry or an industry that has a cyclical nature wanting to stabilize the financials across the product lines.
At BUSINESS INTANGIBLES™, we work with you to achieve your long-term vision. If the M&A arena is the direction chosen, we would establish a plan, identify companies and implement a timeframe to proceed. When a target is determined, a due diligence process is executed, valuating both companies to establish compatibility and target pricing. Financing considerations based on debt and/or equity, which may be exchanged in the deal, will be considered. Finally, we would continue with the going concern of the final structured company, transitioning the systems and operations of the combined entity.
Your Strategic Plan may be to grow from within, utilizing R&D efforts to create new products and Intellectual Property. Planning new product development cycles including idea generation, idea screening, concept development and testing, business analysis, market testing, technical implementation, commercialization, and new product pricing. It is crucial to have a solid roadmap plan. How will launching new products affect your overall corporate financials? What amount of value into the company are you looking to achieve? Will there be new Intellectual Property or Intangible Assets created? How will the new product be financed?
At BUSINESS INTANGIBLES™, we assist with your Strategic Planning to develop new products and technologies. Additionally, assuring Intellectual Property protection and gaining the Maximum Value from Intellectual Properties and Intangible Assets.
Maybe your Strategic Plan is to position the business for sale. The reasons may be retirement, new ventures, or a prime opportunity. Similar to Mergers & Acquisition, placing your company in the best light will bring the highest sale price. Like adding a fresh coat of paint onto a home getting ready to sell, there are multiple areas to prepare a business for selling. Considering that during the Due Diligence phase of the purchase the buying company will assess the value of your company, analyzing everything from the financials to the operations, making Intangible Assets a premium commodity.
At BUSINESS INTANGIBLES™, we establish and launch a plan that generates Maximum Value in preparation to sell. The planning and executing of a Value Creation Plan will add value in a projected span. The results will incorporate additional Intangible Asset value for your company and will be reflected in the Due Diligence conducted by a buyer.