The excitement of signing the deal is one of the top points of any M&A transaction. But that’s only the beginning of the long road to integrating the new entity and delivering on expectations for financial returns.
The goals they set themselves for revenue growth and synergies are often used by acquiring companies to measure the success of their acquisitions. If these targets are met or exceeded, the buyer believes that they have achieved value through M&A. The reality is that these results often come at the expense of the existing business momentum and operational efficiency.
To avoid this, businesses that are acquiring should ensure that they have a clear and well-defined integration plan in place well before the closing date. This process of planning must include thorough due diligence to test the plan’s feasibility and ensure the appropriate resources are in place.
The management team should have a ‘deal champion’ who proactively helps to bring the deal process through to completion http://dataroominstall.net/key-components-of-successful-deal-execution-process and collaborates with advisers during the assessment phase is essential. This will help avoid the typical M&A trap of losing interest, which can result in deals being canceled in mid-process.
To accelerate and improve the M&A process, it’s important for businesses that acquire them to have the proper understanding of the capital markets. PitchBook’s objective, reliable information allows companies to better justify their valuations, organize discussions and promote efficient M&A.