Evaluating Acquisition Targets with the VBG Matrix PPT


This PPT slide, part of the 29-slide Consolidation-Endgame Curve Framework PowerPoint presentation, presents the Value-Building Growth (VBG) Matrix, a strategic tool designed to identify and evaluate potential acquisition targets. It is structured with revenue growth on the vertical axis and value growth on the horizontal axis. The data for these axes can be sourced from annual reports and SEC filings for revenue growth, while historical share price provides insights into value growth. The midpoints on both axes represent the industry averages, serving as benchmarks for analysis.

The matrix is divided into 4 quadrants: Simple Growers, Value Growers, Underperformers, and Profit Seekers. Simple Growers are positioned in the top-left quadrant, indicating they experience revenue growth, but may not significantly enhance value. Value Growers, located in the top-right quadrant, achieve both high revenue and value growth, making them ideal acquisition targets. Underperformers, in the bottom-left quadrant, struggle with both metrics, suggesting they may not be viable options for acquisition. Lastly, Profit Seekers, in the bottom-right quadrant, show potential for value growth, but lack revenue growth, indicating a need for strategic intervention.

The slide emphasizes the importance of plotting potential targets within this matrix while considering the acquirer's own business position. The ultimate goal of any acquisition or merger is to transition the resulting entity closer to the top-right corner of the VBG matrix, where both revenue and value growth are maximized. This framework aids executives in making informed decisions about acquisitions that align with their strategic objectives.



This slide is part of the Consolidation-Endgame Curve Framework PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. Consolidation-Endgame Curve is an AT Kearney Growth Strategy framework commonly used by strategy consultants.

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Maturity Model Growth Strategy Small Business Industry Analysis Revenue Growth

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