RE: Devils advocate13 Mar 2024 21:05
Thanks, BP, for a refreshing counter rather than the emotionally charged comments.
While involving external consultancies like Evercore in the heavy lifting of M&A activities is a common practice (if this is the case), it doesn't diminish the in-house team's strategic role. I assume they had a larger role through conversations over a year, including Cath O'Neil's role. This counters your timeframe IF I am correct with my interpretation). External consultants bring in expertise and an outside perspective, but the in-house team's deep understanding of the company's strategic objectives and culture is irreplaceable, such as the viability of backing SBTX IP into acquired assets. They are crucial in defining an acquisition's strategic fit and integrating it post-deal, ensuring the acquired company aligns with the parent company's vision and values.
The suggestion that an M&A director is necessary, with an expected compensation package in the region of £150k plus bonuses, is an interesting one. However, the role and compensation of an M&A director can vary widely based on the scale, complexity, and strategic importance of M&A activities to the company. Full time! I doubt this fits with the long-term strategy as the current M&A objective appears to be a short-term proposition with long-term revenue build. Of course, we have yet to learn the full costs associated with any M&A, which could be considered excessive in some quarters.
IMHO, we need to keep a watching brief to see what synergies manifest and just how accretive they become. I certainly do not subscribe to them being worthless or minimalistic in value. A perfect example of the double standards employed by We All Know Who is evident today after OPTI announced their Indian partnership with SlimBiome. Whilst I think it has significant potential, one asks why the same excitement by you know who is not shared with the prospects of UMG, which has a much larger sales team, and a far bigger reach in 15 more countries and launched on 1 March. It's a classic example of allowing specific trigger points for cloud analysis.
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