Deal making should be an extension of a company's growth strategy. Deals fuel a company's growth under two circumstances: first, when they strengthen a company's current core business in a stable industry; second, when they provide a means for a company to expand into highly related businesses that reinforce the core.
A clear understanding of a company's basis of competition in its industry should guide deal-making decisions. In simple terms, a basis of competition is how a company makes money, and how it competes. In most industries, it represents the single most important factor for winning.
Companies routinely make acquisitions that are in conflict with their fundamental basis of competition. Successful acquirers, however, use M&A programs either to buttress their basis of competition or to lead or keep up with their industry as it shifts to a different basis of competition.
Bain's experience in M&A strategy
Bain has deep experience in helping companies set their growth strategy. We help companies build their M&A programs as a vector of that growth strategy. As key elements of the process we work with companies to:
- Articulate growth aspirations and understand the basis of competition
- Decide where to invest and where to divest
- Prioritize growth opportunities-organic, M&A, joint ventures/partnerships
- Develop an M&A program-objectives, frequency, size and timing of deals
To find out more about Bain's work in this capability area, please contact the practice.
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Clear investment plans must guide your M&A ideas 
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