The excitement of negotiating an agreement is among the most exciting aspects of M&A. But, that’s only the beginning of a long road to integrating the new entity and meeting on the promises of financial returns.
The targets they set themselves for revenue growth and synergies are often used by companies that acquire them to assess the success of their acquisitions. The acquirer believes that they have added value through M&A when these goals are met or even exceeded. However, the reality is that these accomplishments frequently come at a cost to the current business momentum and efficiency of operations.
In order to avoid this, companies that are buying should ensure that they have click here for more a clear and established integration plan in place well before closing. The process of planning should include detailed diligence to determine the feasibility of the plan and ensure that the right resources are in place.
The management team should have a “deal champion” who proactively ensures that the deal process is brought to completion and works closely with advisers during the assessment phase is essential. This will help avoid the typical M&A mistake of losing interest, which could lead to deals falling over in mid-process.
To speed up and improve the M&A process, it’s important for businesses that acquire them to have the right insights into the capital markets. With PitchBook’s objective and reliable information, companies can better substantiate valuations, focus discussions and improve the efficiency of M&A processes.