Achieving growth by external initiatives – acquisition, joint venture, alliance, licensing – is something that every firm should consider.External initiatives can create value by
* Enabling expansion in new geographies and market segments
* Improving supply chain reliability, cost, and footprint
* Acquiring customers and demand to fill excess capacity
* Reducing seasonality, cyclicality, and dependence on a few customers or narrow markets through diversification
* Finding customers for technology and intellectual property in non-core markets outside the client’s intended areas of use
* Expanding offerings with complementary products that (a) build business and increase importance in current markets and (b) fully utilize sales, marketing, and technology resources
External initiatives take time, focus, and talent. Potential targets and partners have to be found, relationships built, strategic rationale defined, valuation and synergies determined, due diligence performed, negotiations concluded, financing secured, and successful integration achieved! Just screening and responding to unsolicited “opportunities” takes effort. Collecting, sorting through, and reducing mountains of market research to concise actionable information with “What does it mean?” answers is a major challenge for many firms. All of this is the work of the corporate development function. However, small to mid-size (mid-cap) companies may not have the resources and deal flow to attract and support a full time corporate development staff or even one person. Many third party advisers are transaction-focused or focused on offering financing.
How, then, does a small to mid-size firm find a thinking partner with both operating business and transaction perspectives to help the firm do theright deal at the right price?
Corporate Development
The answer may be Trout Creek Consulting’s Corporate Development offering. On either a retained or project basis, TCC will become your firm’s corporate development function or augment your existing corporate development resources. TCC’s founder has provided assessments and/or due diligence on many acquisition, joint venture, licensing, and alliance opportunities. He has managed international due diligence projects and led the strategic planning and M&A function for a $350MM/yr ingredient business supplying the food, medical device, personal care, and pharmaceutical industries. Finally, Mr. Craig also has an operating business perspective, having managed global businesses and held leadership positions in manufacturing, R&D, and finance.
* Enabling expansion in new geographies and market segments
External initiatives take time, focus, and talent. Potential targets and partners have to be found, relationships built, strategic rationale defined, valuation and synergies determined, due diligence performed, negotiations concluded, financing secured, and successful integration achieved! Just screening and responding to unsolicited “opportunities” takes effort. Collecting, sorting through, and reducing mountains of market research to concise actionable information with “What does it mean?” answers is a major challenge for many firms. All of this is the work of the corporate development function. However, small to mid-size (mid-cap) companies may not have the resources and deal flow to attract and support a full time corporate development staff or even one person. Many third party advisers are transaction-focused or focused on offering financing.