Make One plus One=Eleven

I have been involved in the activities of fundraising, due diligence, analysis of potential integration of two different products, mergers, and acquisitions. During this exercise, I compiled extremely important checklist to see if and how synergy could be created between two technologies, two different products, two different market segments, two different organizational cultures, and most importantly, all of the above with the investors who are primarily interested in only ROI, and sustainability.

• First, understand thoroughly all the products/services, what are the value propositions and the upside potential. Are there still some unresolved problems waiting to be addressed?
• Second, clearly identify what is the market segment the product is serving, the domain, and the technological expandability.
• Next, analyze whether the two organizational cultures are Complementing, Similar, or Counterproductive to each other?
• Do not worry about the current competition as yet, because by merging, integrating, or collaborating, our goal is not to make one plus one equal to two, but equal to at least eleven! ( Addressing competition will be in the next phase)
• Investors: Are they looking to make quick bucks or have faith and commitment in the domain for a long haul. What is their financial and time horizon? Often investors are not domain specific savvy and need to be educated. This is where I spent a great deal of efforts and time with all sides, the companies and the investors.
• Finally, the synergy: This is the most important element for the success of any fundraising, merger, acquisition, or collaboration. There are a few cases where there is an obvious natural fit! Most often than not, there requires a lot of homework, hand-holding, and vision to bring all on the same page, be creative such that all stakeholders see themselves as equitable as winners being part of one plus one equals eleven!
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