The excitement of signing an agreement is among the most exciting aspects of M&A. The excitement of signing the deal is one of the most exciting moments in any M&A transaction.
Acquiring companies often assess their success in acquiring companies against goals of synergies as well as revenue growth they have set for themselves prior to the acquisition. The buyer believes that they have added value through M&A when these goals are met, or exceeded. The reality is that this success often come at the cost of existing business momentum and operational efficiencies.
In order to avoid this, businesses that are acquiring must ensure they have a clear and established integration plan in place well before the closing date. The planning process should include thorough due diligence in order to determine the feasibility of the plan, and also ensure that the appropriate resources are in place.
It is crucial to have a deal champion or a member of the management team who is responsible for driving the deal to its conclusion. They must also collaborate closely with advisers in the evaluation phase. This will help avoid the typical M&A mistake of losing interest, which could lead to deals falling over mid-way through the process.
To speed up and enhance the M&A process, it’s vital that companies acquiring them have the right understanding of the capital markets. PitchBook’s accurate, unbiased information helps companies better justify their valuations, organize discussions and drive efficient M&A.