Evaluating the business case through M&A principles
As well as establishing the common ground with the other party, each side must also evaluate the resulting business case to ensure it not only represents a fair and sustainable arrangement but is worthwhile commercially for its own business. This means balancing short- and long-term targets, risks and value creation, and taking a view on the potential for sharing of future gains from innovation. At the same time, the CFO should construct an off-balance business case – essentially calculating the price of doing nothing. Often the price would be commercial oblivion, or even the company becoming an M&A target for a key competitor.
This crucial assessment of all the options is clearly an issue to ...
Get Smarter Outsourcing: An executive guide to understanding, planning and exploiting successful outsourcing relationships now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
