The third component of the financial playbook is mergers and acquisitions (M&A). Further acquisitions, mergers or joint ventures with other companies, brands, technologies, systems, and the like layered on to the new, combined platform—especially in a relatively fragmented market—can enable all the other plans. On one hand, everything in this book applies to bolt-on M&A. On the other hand, in some cases you can do smaller bolt-ons to fix discrete problems or take advantage of discrete opportunities.

Just be deliberate about your choices and what you're buying. It's easier to see if the company you're acquiring has hard assets like buildings, plant, and equipment. It's harder to see if they do not—like many service companies. For example, consulting firm A could buy consulting firm B lock, stock, and barrel, subsuming their brand, intellectual property, and people. Or they could hire away their key people.

We're right back at the beginning. The first, fundamental questions go to what you want out of an acquisition or merger, how it would fit with what you've already got, and what you're willing to give up to get it.

Buy the full consulting (or other firm) if you need everything they are and do. Buy or hire away the parts you value if you don't need the whole thing.