At Dragonfly, we believe there are two critical parts to a significant corporate deal – (1) having a clearly identified and executable deal strategy and (2) having a well-prepared integration strategy. Dragonfly can support both of these elements through its proven methodologies and process.
Negotiation Strategy & Execution: A negotiation strategy is more than a goal of a specific price point, it is a comprehensive and realistic understanding of the key deal points, followed by a comprehensive plan on how to achieve those points – one that prioritizes among the deal points, understands potential tradeoffs and anticipates the challenges ahead and strategies of others. It also anticipates the required operational implementation of the deal and ensures that what will be agreed is something that can be executed in a way to get the benefit of the bargain.
Dragonfly will develop a Deal Plan that encompasses this Deal Strategy. This Deal Plan includes several outputs, including (1) an agreed, prioritized deal points list, anticipated responses/tradeoffs, and proposed strategy for achieving desired results; (2) an agreed deal “positioning” or “theme” that will be used both internally and externally to advance the strategy; (3) a timeline that identifies the key milestones and what it takes for all companies involved to achieve those milestones; (4) a “talking point” communication that ensures that all of the company’s resources involved are aware of, understand and are actively promoting the deal strategy; and (5) a meeting schedule and output documentation to ensure all parties negotiating different facets of the deal are continually aligned. The Deal Plan is continually revisited in light of new or changing information, but the Deal Strategy itself should be fairly consistent throughout. The end result is a deal where the company decision makers understand what has been negotiated on the key deal points and support the final result.
Operational Integration: One of the key factors in the success or failure of any merger or acquisition is the ability to integrate the entities and quickly take advantage of the efficiencies and advantages that led to the deal in the first place. Usually there is a mix of new technologies and products, new resources and offices - often in new geographies, and basic things like new IT (email, security, etc..). All of these areas must be planned for otherwise the benefits that were expected will be quickly lost. There are several necessary steps to achieve this integration: (1) building the success into the deal itself through appropriate incentives and holdbacks; (2) ensuring that the “business deal” that is being agreed is something that is capable of being implemented; (3) starting the integration planning before the deal is executed; and (4) having strong executive commitment, a strong integration leader, and an excellent and well communicated Integration Plan. Dragonfly will work with your Company to develop the Integration Strategy and the Integration Plan and will, as needed, participate, at least initially, in the post-signing integration to ensure that the integration planning is on track to meet the objectives.