The excitement of negotiating an agreement is one of the most exciting aspects of M&A. The excitement of signing the deal is one of the most thrilling moments of any M&A transaction.
Acquiring companies often assess their deal success against the goals of synergies as well as revenue growth that they had set for themselves prior to making the acquisition. If these targets are met or exceeded, the acquirer believes they have achieved value through M&A. However, these successes often come at the cost of existing business momentum as well as operational efficiencies.
To avoid this, the acquiring companies should ensure that a solid integration plan is in place prior to the deal is concluded. The planning process should include detailed due diligence to assess the plan’s viability and to ensure that the proper resources are in place.
It is crucial to have a “deal champion and a member of the management team click here for more who carries the deal to its conclusion. They should also work closely with advisers in the assessment phase. This helps avoid the common problem of losing interest in the M&A process, which can result in deals falling over in mid-process.
To speed up and enhance the M&A process, it’s important for businesses that acquire them to be aware of the capital markets. With PitchBook’s reliable and impartial information, companies can better justify valuations, concentrate conversations and drive efficient M&A processes.