Key Insights:

1) Reasons for M&A: Businesses pursue M&A for various strategic reasons, including synergies, eliminating competition, increasing supply chain power, or even due to succession and retirement of owners.

2) Types of M&A: From horizontal and vertical to concentric and conglomerate mergers, understanding the nature of each type helps in aligning strategic goals with the operational framework.

3) Valuation Techniques: The guide emphasizes the importance of robust valuation methods, whether through market, income, or asset-based approaches, providing a foundation for fair and informed pricing.

4) M&A Process: A systematic approach from strategy formulation to due diligence and integration ensures the success of M&A activities, minimizing risks and enhancing value creation.

KPMG’s framework not only outlines the procedural steps involved in M&A but also highlights the strategic considerations crucial for maximizing the value from such ventures.