Technology Company Acquisition – Workshop 1 (Value Chain Inspect)
The Appleton Greene Corporate Training Program (CTP) for Technology Company Acquisition is provided by Mr. Cuatrecasas Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Montthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
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Learning Provider Profile
Mr. Cuatrecasas is an investment banker, entrepreneur and author. During his career, he has helped hundreds of companies on mergers, acquisitions, capital raisings, company sales, divestitures, restructurings, leveraged buy-outs and a wide variety of strategic issues. He has over 30 years of experience executing strategic deals and delivering proven, actionable strategies for executives to learn how to find the right tech company to acquire and how to do the acquisition in the right way.
He understands from experience that most companies don’t have programs or systematic methodologies ways to “techquify” their operations and advance their strategic positioning. When they do try to acquire or invest in technology companies, competing priorities and inertia get in the way. As a result, most established companies and their ambitious executives go too slow and never unlock their full potential.
His training offers executives a step-by-step approach to all the tricks in the tech company acquisition game, from how to find the right tech start-tech, how to develop the right approach, how to get the lowest possible price and the best terms and do a win-win deal that delivers a 10-100x ROI.
Mr. Cuatrecasas has served as the Founder and CEO of Aquaa Partners, an investment banking firm based in London. Previously he was the Founder and a Partner of Alegro Capital from 2003-2010. Previous to Alegro Capital, Mr. Cuatrecasas was the co-founder and Managing Director of ARC Associates from 1993-2003. (ARC Associates was a leading independent London-based TMT mergers and acquisitions advisory practice with a full range of blue chip and entrepreneurial clients including Sonera, Cable & Wireless, Apax, Marconi, Equant, ICL, KKR, Permira and BT, amongst others). Prior to ARC Associates, Mr. Cuatrecasas was a Senior Associate with Arkwright Capital (ex-Bain & Co. partners), an M&A and Corporate Finance advisory firm in London (1991-1993) and with GE Capital in their LBO and Restructuring Group in New York (1989-1991).
Over the past thirty years, Mr. Cuatrecasas has completed over fifty merger and acquisition transactions around the world worth more than $25 billion dollars and over 70 corporate finance advisory and strategic consultancy assignments.
Mr. Cuatrecasas holds an MBA from Columbia University where he was awarded the Roswell C. McCrea Scholarship and a BA from Wake Forest University. Mr. Cuatrecasas holds dual US and UK citizenship and speaks fluent Spanish. Mr. Cuatrecasas has been quoted in The Washington Post, The Los Angeles Times, US News & World Report, and Forbes. He lives (most of the time) in London with his wife and three children.
MOST Analysis
Mission Statement
In this first and critically important step of the TechquisitionTM method, the company’s senior executive management commits to creating value through finding and investing in or acquiring (or otherwise instigating a joint venture or exclusive partnership with) the right technology (or digital) company. If the CEO and senior management do not believe it is possible to transform the market value of their company via tech company acquisition, then the TechquisitionTM effort will likely fail. The commitment must be in place. A corporate initiative that is begun from a nice-to-have or let’s-see-what-happens position rather than a need-to-have or must-do mindset is doomed to fail. Too many other competing priorities will get in the way. If the board is not supporting, and, in many cases, leading the charge, then it should at least be aware of the inorganic innovation effort and ideally confirm the value-chain inflection points and specifications proposed by management concerning the type of characteristics the ideal target company should have. Assuming a commitment is confirmed, then the company’s senior management should take the time to review and check the board’s decision and specifications to strategically invest in or acquire a technology company. This should include a thorough inspection of the company’s value chain—assess the opportunities and check strategic imperatives against the industry and market trends, the competitive environment, and the company’s positioning, and assess the needed capabilities, the customer demands, and the evolving technological landscape.
Objectives
01. Strategy Desk Audit: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Competitive Analysis: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Identify Stakeholder Goals: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Identify Value Chain Inflection Points: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Example Target Companies: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Value Creation Potential Analysis: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Availability of Opportunities: departmental SWOT analysis; strategy research & development. 1 Month
08. Proximity to the Core: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Geographic Relevance: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Culture Fit: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Assessment of Trade-offs: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
12. Create a Project Schedule: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. Strategy Desk Audit: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Competitive Analysis: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Identify Stakeholder Goals: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Identify Value Chain Inflection Points: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Example Target Companies: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Value Creation Potential Analysis: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Availability of Opportunities: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Proximity to the Core: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Geographic Relevance: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Culture Fit: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Assessment of Trade-offs: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
12. Create a Project Schedule: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyse Strategy Desk Audit.
02. Create a task on your calendar, to be completed within the next month, to analyse Competitive Analysis.
03. Create a task on your calendar, to be completed within the next month, to analyse Identify Stakeholder Goals.
04. Create a task on your calendar, to be completed within the next month, to analyse Identify Value Chain Inflection Points.
05. Create a task on your calendar, to be completed within the next month, to analyze Example Target Companies.
06. Create a task on your calendar, to be completed within the next month, to analyse Value Creation Potential Analysis.
07. Create a task on your calendar, to be completed within the next month, to analyse Availability of Opportunities.
08. Create a task on your calendar, to be completed within the next month, to analyse Proximity to the Core.
09. Create a task on your calendar, to be completed within the next month, to analyze Geographic Relevance.
10. Create a task on your calendar, to be completed within the next month, to analyse Culture Fit.
11. Create a task on your calendar, to be completed within the next month, to analyse Assessment of Trade-offs.
12. Create a task on your calendar, to be completed within the next month, to analyse Create a Project Schedule.
Introduction
Technology companies are not just disruptors—they are the future. For legacy companies to remain relevant and competitive, the most effective strategy is to transform themselves into technology-driven organizations. This transformation is often achieved through strategic acquisitions, partnerships, or joint ventures with innovative tech companies that can provide the competitive edge needed to thrive in the digital age. The course is designed to equip senior executives with the knowledge and tools necessary to navigate the complexities of acquiring or investing in the right technology company.
The first module, Value Chain Inspect, is a critical component of the Techquisition™ methodology. It lays the foundation for the entire acquisition process, focusing on ensuring that the company’s senior executive management is aligned in its commitment to creating value through acquisition or strategic partnership. Without this foundational alignment, no subsequent efforts will succeed. The executive team must believe that transforming the market value of their company through technology company acquisition is not only possible but essential for survival and future growth.
The Importance of Commitment
In Part 1, Month 1: Value Chain Inspect, the course emphasizes the importance of total commitment from the company’s senior leadership. This commitment is more than a casual interest in potential opportunities; it must come from a place of necessity, not just curiosity. A common mistake companies make is approaching acquisitions with a “nice-to-have” mindset rather than a “must-do” attitude. When acquisition efforts are seen as optional or exploratory, they often lose momentum as other priorities take over, leading to a failure to capitalize on potential opportunities.
A successful tech company acquisition requires an executive team that not only understands the strategic importance of the acquisition but also drives the process with a sense of urgency and purpose. As outlined in the Techquisition™ methodology, if the board of directors does not fully support or lead the initiative, it at least needs to be aware of the acquisition’s strategic implications and validate the management’s proposed value chain inflection points. The board plays a crucial role in ensuring that the company’s leadership is on the same page regarding the types of characteristics the target technology company should possess.
Value Chain Analysis as a Strategic Imperative
The concept of Value Chain Inspect centers around a thorough analysis of the company’s value chain, which is essential for identifying strategic opportunities and aligning them with market trends and competitive pressures. This process involves inspecting each stage of the company’s value chain to determine where value can be added or enhanced through technological integration.
The value chain, a concept popularized by Michael Porter, breaks down a company’s activities into strategically relevant pieces to understand where and how value is created and delivered to customers. In the context of technology company acquisitions, the goal is to identify value chain inflection points—specific areas where integrating new technologies or digital capabilities could significantly boost efficiency, enhance customer satisfaction, or open up new revenue streams.