Due to the engagement, questions, and interest generated by our first article, The Case for a Programmatic Approach to M&A, we’re excited to take a deeper dive into how we implement this strategy at G-Spire Group. In this follow-up, we’ll offer practical examples and discuss key elements that form the foundation of a successful programmatic M&A approach.
McKinsey’s research shows that businesses taking a programmatic approach to M&A have a 65% chance of outperforming their peers. Among the four main growth strategies (large deal, selective, programmatic, and organic), the programmatic approach was the only one consistently delivering positive total returns to shareholders (TRS). This result has been observed across industries, making it clear that a structured, disciplined approach to M&A can drive superior outcomes.
Why Programmatic M&A Matters
If you’re looking to grow your business through M&A and have clear evidence that a programmatic approach significantly increases your chances of success, the logical next step is to explore how to implement it. By structuring your M&A efforts in a programmatic way, you can dramatically improve your odds of success. At G-Spire Group, our approach revolves around five core principles:
Be Focused: Know what your objectives are, and ensure your M&A strategy aligns with them.
Be Proactive: Don’t wait for deals to come to you—actively pursue opportunities that fit your strategy.
Be Resourced: Proper execution requires time, money, and the right people. Ensure you have the necessary resources in place.
Be Disciplined: Stick to your strategy and avoid being sidetracked by deals that don’t align with your long-term goals.
Be Open-Minded: Adopt a growth mindset, and always be willing to learn from successes and failures along the way.
Introducing the G-Spire Playbook: Your Customized Guide to Programmatic M&A
At G-Spire Group, we’ve created a comprehensive G-Spire Playbook that empowers our clients to systematically execute and refine their growth strategies. Designed to be used for each functional area and every step of the M&A process, the playbook acts as a living document that is continually updated with new insights, best practices, and learnings from completed transactions.
To illustrate our approach, we’ve included a graphic of a templated section from the playbook, demonstrating how we outline processes, best practices, and suggested improvements. This template is an essential tool for managing and optimizing everything from Strategy Development to Post-Acquisition Integration, offering actionable insights into solving friction points and reinforcing a proactive, growth-oriented mindset.
By keeping the playbook dynamic and responsive to change, businesses can adapt and thrive in an evolving market. The goal is to help clients build M&A as a core competency within their organization, allowing them to move beyond one-off deals and sustain long-term growth through programmatic M&A strategies. Just like any other competency, this requires constant attention, refinement, and improvement, ensuring that companies are always positioned for strategic success.
Key Elements of a Programmatic M&A Plan
A successful programmatic approach requires several critical elements to be in place:
- Growth Mindset: You must prioritize M&A and recognize its importance in driving long-term growth.
- Strategic Plan: Understand what your company is building toward, and ensure you have a clear vision for how M&A fits into that.
- Strategic M&A Plan: This is the actionable roadmap for executing deals that align with your overall corporate strategy.
- Execution Resources: It takes real, disciplined effort to execute a successful M&A strategy. Ensure you have the right team and financial resources in place.
- Active Playbook Management: The G-Spire Playbook should be updated regularly to reflect the latest learnings and market conditions.
- Annual Strategy Sessions: Hold regular meetings with your management team to review and adjust your M&A strategy based on new data and insights.
Practical Examples of Programmatic M&A in Action
There is immense value in putting a strategy on paper. It forces clarity and focus, allowing management teams to make faster, more informed decisions. While it may take months to fine-tune a strategic M&A plan, the effort is worthwhile. Often, the strategy evolves as assumptions are tested and new insights come to light. By the time it’s finalized, the team will have a clear direction that can guide the entire M&A process.
For instance, having a well-defined M&A strategy enables quick decision-making when evaluating potential deals. Many management teams waste valuable time considering deals that don’t align with their strategy. By having clear criteria for what constitutes a good fit, teams can avoid this pitfall and focus their time and resources on deals that truly add value.
The Importance of a Growth Mindset
One of the most important aspects of a programmatic approach to M&A is maintaining a growth mindset. Every deal, whether successful or not, provides an opportunity to learn and improve. If mistakes are made—whether it’s overlooking an important detail during due diligence or failing to recognize a key emotional cue from the seller—it’s crucial to capture those lessons and apply them to the next transaction.
At G-Spire, we believe that adopting this mindset is one of the secret ingredients to building a high-functioning M&A capability. By constantly learning from past deals and refining the strategy, companies can build a repeatable process for success.
Conclusion
Building a programmatic approach to M&A is not just about completing transactions—it’s about developing a core competency for long-term, sustainable growth. At G-Spire Group, we are passionate about helping businesses grow through mergers and acquisitions. Our programmatic approach is a proven method for success, and we would be honored to assist you on your growth journey. We offer tailored strategies to fit your unique needs and would love to help you build a customized programmatic approach, complete with your very own M&A playbook. Let us partner with you to turn your growth ambitions into reality.
Feel free to reach out, and let’s start building your path to success through M&A!
Let’s get started!