Christopher Humphry,Market Entry Strategy & Target Search & Selection,M&A MasterClass 19th & 20th March 2001,Contents,Introduction and background Market entry strategy Top Rose Case Study Target search and selection Merrill Lynch Case study,Introduction & Background,Market entry strategy and target search and selection are concerned with strategic questions on how to effectively grow or reorganise the business,Where should we invest? What scale should we consider and when? How can we divest?,Market Entry Strategy,Target Search & Selection,Commercial Due Diligence,Strategic Valuation,Securing the Deal,Integration or Merger,Whom should we buy? How good a fit will they be? Who else might be interested?,CGE&Ys legacy organisations bring 15 years experience in pre-deal M&A services to the table,Market Entry Strategy,Target Search & Selection,Commercial Due Diligence,Strategic Valuation,Securing the Deal,Integration or Merger,Pre-Deal,Deal & Post Deal,Gemini,Schroeders Merrill Lynch Randstadt ABN Amro United Biscuits,Ernst & Young,Rhone-Poulenc LloydsAbbey Life EKO Nobel xxx xxx,Consequently, in building our new M&A service offering we have built a strong pre-deal focus,Criteria development Pre-screening & pre-selection Profiling of candidates Choice/ Preference First Contacts,Target Search & Selection,Commercial Due Diligence,Market entry strategy,Strategic Valuation,Post Merger Integration,De-Merger and Separation,Underpinned by effective Change and Programme Management,Strategy review Make vs buy Business case development Option analysis,Target analysis Market dynamics Target position and trends Process review Fit analyses,Synergy quantification Business evaluation Integration requirements NPV, EVA, CFROI etc.,Integration blueprinting Executive alignment & selection Organisation design Transition planning Programme design and set-up Risk management Organisation mobilisation,De-merger blueprinting Executive alignment & selection Organisation design Transition planning Programme design and set-up Risk management Organisation mobilisation,Focus of this presentation,Top Rose Project,Market Entry Strategy,Randstadt, a leading temporary services firm, hired CGE&Y to investigate growth opportunities in the high-end segment of the market,Teams Objectives: Examine the feasibility of a high-end professional services business Articulate the vision for the business Identify critical success factors for building the business Outline strategic options and organising concept Develop financial scenarios Outline a high-level implementation plan,Our approach leveraged external and internal analyses to identify the optimal opportunities for the client,Capabilities Case studies,Entry Strategies Markets Products Segments,Market size and growth Customer preferences Gaps Benefits Case,Competition Alliances/acquisitions candidates Entry strategy,“Which markets . . . . . . with what offers . . . . . . entered how . . . . . .at what cost,Quick Wins Required: Systems Organisation Measures Processes,Select Markets Series of options,Achieving competitive advantage,Offer development and sizing,Align Vision,Short-list opportunities,Agreed entry strategies,Implementation planning,Opportunity identification,Detailed in-market research,August - September,September - November,Nov - Dec,Internal Focus:,Market Focus:,Focus and level of detail:,Macro,Micro,Each phase produced analyses that enabled the client to make decisions to move forward,Executive alignment re: expansion strategy, e.g.: Scope and timing Offensive vs. defensive Agreed country screening criteria Set of prioritised hypotheses: Products Services Distribution Understanding/synthesis of: Lessons learned to date in-country Previous research List of exportable core competencies and gaps: Corporate-level Acquisitions In-country Short-list of prioritised countries: Phasing calendar,NovemberDecember,SeptemberNovember,AugustSeptember,Agree Business Goals/ Capabilities/Opportunities,Identify Offers and Market Entry Strategies,Agree Entry Strategies and Build Implementation Plans,Case studies: New market entrants alternate strategies By country: Competitive scan “White spaces” Options: products, services Required capabilities and gaps Potential entry options: Acquisitions Organic build alliances Preliminary market-entry partner candidates. Cross-market opportunities: Central utilities Top-level benefits case Agreement: markets, offers, entry strategies,Detailed business case by country Agree screening criteria: Acquisition candidates Potential partners Short-list (cut 1) acquisition/partner candidates Value propositions/country Implementation plans: Infrastructure Organisation Marketing Negotiations,Output:,Our approach involved developing criteria for evaluating the market opportunity of Top Rose in each of the five largest temporary services markets,Market size Growth prospects Competitive intensity Cultural factors Ease of entry,Ambition Size Growth rate Critical mass Costs and risks,