Read more about the FTI Journal
Organizations have long-factored the great lessons of history into their business strategies. One familiar adage, “know yourself, know thy enemy,” is particularly popular, and for good reason. It entails being aware of your competitors’ movements to better gauge your own position.
But what happens when you’re an acquiring company in a merger and acquisition (M&A) and your competitors start lunging at your target? How does an organization remain proactive in such a volatile landscape?
M&As can be ripe with uncertainty. Every unforeseen factor that follows the announcement of a deal has the potential to significantly impact a business’ reputation and value. This presents a unique challenge for organizations trying to mitigate the unknown risks while handling all the nuances of a deal. Conventional M&A integration tactics, unfortunately, lack the stress-testing necessary to forecast competitor response.
There is a strategy, however, that can be applied in this instance. And like the “know thy enemy” adage, it comes straight out of history and has been tailored for C-level circles.
It’s known as "Business Wargaming." For a definitive dive into the tactics of this powerful strategy for reaching a successful outcome, click here.
