The excitement of signing an agreement is among the most exciting events in M&A. The excitement of signing the deal is among the most thrilling moments in any M&A transaction.
Acquiring companies typically evaluate their deal’s success against goals of synergies and growth they have set for themselves prior to the acquisition. The acquirer believes they have added value through M&A when these targets are met or even exceeded. However, these achievements often come at the cost of the existing business momentum and operational efficiencies.
To avoid this, the acquiring companies should ensure that a clear integration strategy is in place before the deal is signed. This process of planning should include detailed diligence to assess the plan’s viability and ensure that the necessary resources are in place.
It is vital to have a ‘deal champion or one of the members of the management team who is responsible for driving the deal through to completion. They should also work closely with advisers during the evaluation phase. This can help avoid the common M&A risk of losing interest, which can result in deals falling over mid-process.
To enable companies that acquire them to speed up and improve their M&A processes, it is important to have the correct understanding of the capital markets. PitchBook’s unbiased, accurate data helps companies better justify valuations, concentrate discussions and facilitate efficient M&A.