Mergers & Acquistions
CHALLENGE
How to best position British Aerospace for a strategic European acquisition? Which company to acquire? What strategies reach a cost effective agreement?
SOLUTION
As a complex, UK-FRA-GER multinational negotiation, over 40 stakeholders were involved for each acquisition target including senior executives, shareholders, corporate groups, multiple governments, regulators, and other market players. Four possible acquisition targets were vetted – Dassault, Thompson, DASA, and GEC-Marconi.
Working with the Board, we focused on business scope synergies, price premium, equity positions, management structure, shareholders’ rights, valuation, and post merger integration issues for each target. Analytics found the right strategies and paths to:
Acquire GEC-Marconi at a low cost, overcoming any potential post-merger integration issues and to quickly capture accretive value.
Achieve rapid UK government regulatory approval and position BAE for further EU cooperation.
VALUE
Board adopted strategy, tactics and sequencing script and acquired GEC-Marconi which resulted in the creation of the £15B+ BAE Systems, Europe’s largest defense conglomerate.