... where visionaries, game changers, and challengers discuss business models
I have not seen any reference to the use of business models in the M&A scenario. I would think this a useful application. In my view there would be 2 premerger models of the organisations which are merging. This could provide an additional tool in the due diligence process. The postmerger model can be contructed prior to merger completion and again would provide a strong platform for debate and ensure consensus of vision for the merged entities.
Has anyone had any experience of using business models in this manner? Has it proved worthwhile? Has it brought a new dimension to M&A activity? What lessons have been learned?
Hopefully we can commence a discussion on this topic.
This is a very good topic for discussion. I am using the canvas for an ongoing project that is structured around a M&A deal. We illustrated the Pre and post merger activities and scenarios to understand the entire platform and what key areas of focus need attention at the earliest during the lifecycle. Using multiple canvases linked can also be helpful.
I agree with Philp that this should be part of the due diligence phase.
A key learning part is the strong emphasis on the VP section which help all members understand the objectives and value of the deal.
Let's keep this discussion going.
Currently I am working with a client for 2 objectives using business models.
1. Outside- In approach for foreign acquirers targeting companies using the the canvas for understanding target companies local/domestic model.
2. Pre and Post Merger integration blueprint as part of the due diligence process.
The output is basically conceptualizing BMC in the entire M&A cycle, in addition to linking back to the business valuation results.
In addition to the options listed by other contributors, the BMG canvas can be leveraged to define the business development strategy of an organisation where mapping the ToBe canvas will highlight which building blocks are currently weak or non-existent and so need to be "built" via acquisition or partnership e.g. JV
I have just finished using the BMC to compare two organizations looking to merge. It was very helpful to determine the synergies and gaps, particularly when looking at the To-Be model. Using some simple color coding, the collective overlaps and gaps were made very evident. These were easily captured and prioritized as part of the integration action plan.
The as-is BMC models were an intergral part of the evaluation.
Definitely a useful tool for this exercise!
Good discussion going on here. I just attended the Asian Venture Capital and Private Equity forum which one of the topic was on business models in the M&A industry. One key point highlighted was the best way to visualize the as is an To-Be model during the transition process. Yes the BMC can be fully utilized for this effort. If anyone has any prototypes to share on this I would grateful to view this.