Module 7, Course 2, Session 18 Growth Strategies - External March 9, 2013

Discussion Topics
Section Introductions and Segment Objectives The Acquisition Process – Target Research and Process Execution Case Studies Concluding Thoughts – Keys to Success Background Information on John Dickinson Page 2 3 7 15 17

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Introductions and Segment Objectives
Introductions: • • John Dickinson – Session Leader Participants – Goals, objectives, questions, and backgrounds

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Session Objectives: • Why pursue external strategies? • • • Limited organic growth versus strategic goals New products / services, end markets, technologies, and customers, as well as sourcing synergies

What are some of the strategies? • • • Joint ventures – private and public / governmental Acquisitions Divestitures and re-investing in the core business

The Acquisition Process: • • Strategic goals and target identification / research Deal execution – the team, valuation / structure, and culture / integration

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The Acquisition Process – Target Research and Deal Execution

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Developing the Optimal Acquisition Process

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Optimizing the process begins with analyzing the unique dynamics of the Buyer’s situation, and then developing an appropriate and flexible strategy for achieving the Buyer’s goals.

Process Considerations
Current End Market Dynamics & Outlook Parent Company Objectives & Resource Commitment Management Team Objectives Universe, Attributes, and Strategies of Likely Targets Size, Quality, and Performance of Targets Credit and Equity Market Conditions

Process Overview

Formulating Acquisition Criteria

Identifying the Right Targets

Valuation & Financing

Timing

Communications with Parent / Bd.

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Acquisition Process Overview

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Banker will work closely with the Buyer