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A Chemical Company Fuels M&A Growth

BCG helped a leading chemical company develop detailed playbooks and a permanent target-screening process, enabling it to grow through acquisitions.

ChemCo, a large and diversified chemical company with ambitious plans, knew that it wanted to grow through acquisition. But it wasn’t certain how to act quickly and skillfully when acquisition opportunities arose.

BCG helped ChemCo become more nimble in the acquisition market by:

  1. Identifying a list of 15 important potential acquisition targets
  2. Developing detailed playbooks for each of those targets
  3. Developing and implementing a continuous screening process for further target identification

The initial target screening provided not only a list of potential acquisition targets but also detailed plans for negotiations with each company. The playbooks gave an in-depth view of each target, along with the value creation case for the potential combination.

A comprehensive review assigned a price premium based on identified risk factors. BCG also evaluated the bidding landscape and recommended specific bidding ranges and negotiation tactics.

At the same time, BCG was also helping ChemCo establish an “always-on” mergers-and-acquisitions M&A process to position the company to be ready to do the right deal at the right time, whenever that might be. Important components of the process included identifying and prioritizing critical needs, finalizing “chase now” candidates, performing valuation calculations and due diligence, and sharpening negotiation and deal-closing skills.

A detailed negotiation handbook was created to address the full scope of future deal-closing activities. As a result, ChemCo was able to establish an effective M&A process that’s allowing the company to take advantage of acquisition opportunities at the right time and the right price.

Process Industries & Building Materials
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