--- title: What is your approach to Value Creation? description: Mergers Acquisitions Value Creation Strategy Business Joint Ventures You Strategic Planning Transformation Change growth bold inorganic goals ultimate image: https://www.thinkingdimensions.com/hubfs/Hero%20Images/hubspot_website_deisgners.jpg --- - [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation), - [Articles and Insights - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/articles-and-insights-strategic-transformation), - [strategic planning](https://www.thinkingdimensions.com/blog/strategy/topic/strategic-planning), - [success](https://www.thinkingdimensions.com/blog/strategy/topic/success), - [Joint Ventures](https://www.thinkingdimensions.com/blog/strategy/topic/joint-ventures), - [Strategy](https://www.thinkingdimensions.com/blog/strategy/topic/strategy), - [Mergers and Acquisitions](https://www.thinkingdimensions.com/blog/strategy/topic/mergers-and-acquisitions), - [Value creation](https://www.thinkingdimensions.com/blog/strategy/topic/value-creation) # What is your approach to Value Creation? ![Woman standing in a board room presenting to a group in a meeting about value creation](https://www.thinkingdimensions.com/hubfs/Hero%20Images/hubspot_website_deisgners.jpg) - February 15, 2023 ![Scott Newton](https://www.thinkingdimensions.com/hs-fs/file-665636338-jpg/img/Scott_Newton.jpg) [ Scott Newton ](https://www.thinkingdimensions.com/blog/strategy/author/scott-newton) How do you create value? Creating value is the ultimate goal of any M&A transaction, a bona fide way of boosting top-line growth and shareholder return. Yet according to PWC, more than 70 percent of mergers fail to deliver anticipated shareholder value. As an example, just this week US Fintech FIS is spinning off Worldpay, only 4 years after acquiring it for $43 Billion USD. The announcement on February 13th lead to a 14% share decline in early market trading Monday for FIS. As the Financial Times notes "FIS’s decision to break up the company follows criticism by activist shareholder DE Shaw, which demanded it reviews its business strategy, including considering undoing the 2019 deal." In a recent cover article by [Fraser Tennant](https://www.linkedin.com/in/ACoAAAMbFBABxnGAc8JoBXW3kEWh_Pj6ie4fteU) Thinking Dimensions Managing Partner Scott Newton was delighted to discuss with Mr. Tennant value creation and M&A: “If we take a look at one of the largest value-destruction cases in history, the $99bn write-off of AOL Time Warner, strategic assumptions were not valid, the merged firm did not have the capabilities to explore new opportunities, and cultures were never successfully integrated,” notes Scott Newton, managing partner at Thinking Dimensions. “After acquiring AOL for $165bn in 2001, the business unit was sold off to Verizon in 2015 for only $4.4bn.” Mindset With synergies identified and quantified, it is of paramount importance for acquirers to have a value-creation mindset in place. That mindset should be hardwired across the M&A lifecycle and go beyond what is expected to explore untapped areas of growth. “A value-creation mindset is critically important,” suggests Mr Newton. “Successful acquirers have already built their first case for value creation before even drafting a letter of intent (LOI) or term sheet. The most challenging hurdle in value creation is to think about the business from the customer point of view. In many organisations, boards and management tend to be very internally focused. “This challenge, for example, led to the board of Blockbuster declining to invest in Netflix at seed level terms,” he continues. “Ideally, acquirers should be able to describe the optimal state of the transaction in the future. What will it look like? How will we get there? What are the breakthroughs that will deliver exceptional returns to investors?” You can read the full article at [Financier Worldwide Magazine](https://www.linkedin.com/company/financier-worldwide-magazine/) and through the link here. Want to discuss [#valuecreation](https://www.linkedin.com/feed/hashtag/?keywords=valuecreation&highlightedUpdateUrns=urn%3Ali%3Aactivity%3A7031494808435105793) and [#mergersandacquisitions](https://www.linkedin.com/feed/hashtag/?keywords=mergersandacquisitions&highlightedUpdateUrns=urn%3Ali%3Aactivity%3A7031494808435105793) in detail? Are you and your firm ready for Bold [#growth](https://www.linkedin.com/feed/hashtag/?keywords=growth&highlightedUpdateUrns=urn%3Ali%3Aactivity%3A7031494808435105793) ? [You can read the entire cover story article here: ](https://www.financierworldwide.com/ultimate-goal-value-creation-in-ma#.Y-yY_N_SzX4.twitter) Blog Post ## Related Articles Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. [![How Great Companies Deliver Both Purpose and Profit. Grow the Pie New Book by Alex Edmans](https://www.thinkingdimensions.com/hubfs/5-Top-Business-Books-CEOs-Should-Be-Reading-in-Lockdown-1.jpg) ](https://www.thinkingdimensions.com/blog/strategy/five-top-business-books-ceos-should-be-reading-today) [Articles and Insights - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/articles-and-insights-strategic-transformation), [Change Management](https://www.thinkingdimensions.com/blog/strategy/topic/change-management), [CEO](https://www.thinkingdimensions.com/blog/strategy/topic/ceo), [growth](https://www.thinkingdimensions.com/blog/strategy/topic/growth), [Sustainability](https://www.thinkingdimensions.com/blog/strategy/topic/sustainability) ### [ Five Top Business Books CEOs Should be Reading Today ](https://www.thinkingdimensions.com/blog/strategy/five-top-business-books-ceos-should-be-reading-today) June 3, 2020 From beating burnout to motivating a remote team, here are some of the newest business books that CEOs should be... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/five-top-business-books-ceos-should-be-reading-today) [![Profile Photo of Managing Partner Scott Newton Thinking Dimensions](https://www.thinkingdimensions.com/hubfs/07_426A9453-1.jpg) ](https://www.thinkingdimensions.com/blog/strategy/how-can-you-create-the-ambidextrous-organization) [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation), [strategic planning](https://www.thinkingdimensions.com/blog/strategy/topic/strategic-planning), [success](https://www.thinkingdimensions.com/blog/strategy/topic/success), [customers of the future](https://www.thinkingdimensions.com/blog/strategy/topic/customers-of-the-future), [customers](https://www.thinkingdimensions.com/blog/strategy/topic/customers), [Strategy](https://www.thinkingdimensions.com/blog/strategy/topic/strategy), [CEO](https://www.thinkingdimensions.com/blog/strategy/topic/ceo), [speed](https://www.thinkingdimensions.com/blog/strategy/topic/speed), [innovation](https://www.thinkingdimensions.com/blog/strategy/topic/innovation), [Digital Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/digital-transformation), [Value creation](https://www.thinkingdimensions.com/blog/strategy/topic/value-creation) ### [ How can you create the Ambidextrous Organization? ](https://www.thinkingdimensions.com/blog/strategy/how-can-you-create-the-ambidextrous-organization) July 11, 2022 Thinking Dimensions Managing Partner Scott Newton speaking on the panel "Corporate Innovation: From Showcasing to True... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/how-can-you-create-the-ambidextrous-organization) [![Author Scott Newton wearing a suit and tie](https://www.thinkingdimensions.com/hubfs/05_426A9415.jpg) ](https://www.thinkingdimensions.com/blog/strategy/what-are-the-inflection-points-in-your-strategy-for-2023-and-beyond) [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation), [Competitive Advantage](https://www.thinkingdimensions.com/blog/strategy/topic/competitive-advantage), [customers of the future](https://www.thinkingdimensions.com/blog/strategy/topic/customers-of-the-future), [Strategy](https://www.thinkingdimensions.com/blog/strategy/topic/strategy), [speed](https://www.thinkingdimensions.com/blog/strategy/topic/speed), [growth](https://www.thinkingdimensions.com/blog/strategy/topic/growth), [Digital Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/digital-transformation), [Sustainability](https://www.thinkingdimensions.com/blog/strategy/topic/sustainability) ### [ What are the inflection points in your Strategy for 2023 and beyond? ](https://www.thinkingdimensions.com/blog/strategy/what-are-the-inflection-points-in-your-strategy-for-2023-and-beyond) January 19, 2023 Managing Partner Scott Newton is hosted on KCLR Ireland radio "Tech Matters" with John Cleere on the inflection points... 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