The thrill of signing the deal is among the top points of any M&A transaction. The excitement of signing the deal is one of the most thrilling moments in any M&A transaction.
Acquiring companies typically evaluate their deal’s Extra resources success against targets of synergies and revenue growth that they had set for themselves prior to the acquisition. If these targets are met or exceeded, the acquirer believes that they have succeeded in generating value through M&A. However, the reality is that these results often come at the expense of existing business momentum as well as operational efficiency.
To avoid this, companies that are buying should ensure that they have a clear and well-defined integration plan in place well before the deal closes. This planning process should include thorough due diligence to test the plan’s feasibility and ensure that the proper resources are in place.
Having a management team “deal champion” who helps to bring the deal process through to completion and works closely with advisers during the process of assessment is crucial. This helps avoid the common M&A mistake of losing interest, which could result in deals being canceled in the middle of the process.
For acquiring companies to accelerate and improve their M&A processes, it is essential that they have the proper understanding of the capital markets. PitchBook’s reliable, impartial information allows companies to better justify valuations, concentrate discussions, and ensure efficient M&A.
