The excitement of negotiating an agreement is one of the most exciting aspects of M&A. The excitement of signing the deal is among the most thrilling moments of any M&A transaction.
Acquiring companies typically evaluate their success in acquiring companies against goals of synergies as well as revenue growth they set for themselves prior to making the acquisition. When these targets are achieved or exceeded, the acquirer believes that they have achieved value through M&A. However, these success often come at the expense of existing business momentum and operational efficiency.
To avoid this, acquiring companies must ensure that a clear integration plan is in place before the deal is completed. This process of planning should include detailed due diligence to determine the feasibility of the plan and to ensure that the proper resources are in place.
It is vital to have a deal champion,’ a member of the management team who carries the deal to its conclusion. They should also work closely with advisers in the evaluation phase. This can help avoid the common M&A risk of losing interest, which could result in deals falling over in the middle of the process.
To speed up and enhance the M&A process, it’s also important for businesses that acquire them to have the right understanding of the capital markets. With PitchBook’s unbiased and accurate data, businesses can better substantiate valuations, focus on conversations and ensure efficient M&A processes.