M&A TARGETING SIMPLIFIED: INSIGHTS FOR CONFIDENT DECISION-MAKING

In the dynamic world of mergers and acquisitions (M&A), making the right strategic decision can define a company’s trajectory for years to come. Recently, we had the privilege of collaborating with a foreign consulting firm on a highly strategic project for their client, a major player in the coatings and dyes industry in the MENA region. This client faced a pivotal decision: whether to invest in building a new plant in their home country or to expand regionally by acquiring a company – either fully or partially – within the same industry.

The target countries for this ambitious regional expansion included Greece, Turkey, and Bulgaria. Given our expertise in the Turkish market, our role was to lead the targeting and target inquiry efforts on the Turkish side of the project. Through this engagement, we provided key insights and actionable intelligence to help the client make an informed decision aligned with their growth strategy.

How Targeting and Target Inquiry Drive Success in M&A

Our work on this project highlights two essential components of the M&A process: targeting and target inquiry. These steps serve as the foundation for identifying and assessing the most suitable opportunities. Here’s how these processes work and why they’re crucial:

Targeting: Defining the Right Opportunities

Targeting involves identifying potential acquisition candidates that align with the client’s strategic objectives. In this case, our role was to:

• Define criteria for potential targets, including industry relevance, market position, operational capabilities, and financial metrics.
• Leverage our in-depth knowledge of the Turkish market to conduct comprehensive research and identify companies that could meet these criteria.
• Narrow down the list of potential targets based on their alignment with the client’s goals, such as regional expansion, market share growth, and operational synergies.

Target Inquiry: Opening the Door to Opportunities

Once potential targets were identified, we initiated the target inquiry phase to evaluate interest and suitability. This phase included:

• Establishing communication with shortlisted companies, either directly or through intermediaries, while maintaining confidentiality.
• Facilitating the exchange of preliminary information, such as financial performance and operational details, under strict Non-Disclosure Agreements (NDAs).
• Assessing the strategic fit of each target and their willingness to engage in discussions about a potential transaction.

Our localized approach ensured that the client received detailed, market-specific insights and minimized risks associated with entering the Turkish market. This information was instrumental in helping the client weigh their options and determine whether acquisition or greenfield investment was the right path forward.

Delivering Value Through Expertise

As part of this collaboration, our expertise in the Turkish market and our structured approach to targeting and target inquiry enabled us to deliver critical insights to the client. By combining rigorous analysis with strategic foresight, we helped the client:

• Identify acquisition opportunities with the highest potential for synergies.
• Understand market dynamics and competitive positioning in Turkey.
• Gain clarity on the financial and operational considerations of a potential deal.

Whether you’re exploring M&A opportunities in Turkey or seeking to expand regionally, our team is here to provide the expertise and support you need to navigate complex decisions with confidence.

If your organization is considering a strategic move in M&A, let’s discuss how our tailored targeting and inquiry services can help you achieve your goals. Reach out to us to learn more about how we can add value to your expansion strategies.