The thrill of completing the deal is among the most exciting aspects of any M&A transaction. However, that's just the beginning of the long road to integrating the new entity, and delivering on the promises of financial returns.
The goals they get more set themselves for revenue growth and synergies are frequently used by acquiring companies to measure the success of their acquisitions. The acquirer believes they have added value through M&A when these goals are met, or even exceeded. However, the reality is that these successes often come at the expense of the existing business momentum and operational efficiencies.
To avoid this, acquiring businesses should ensure that they have a clear and well-defined integration plan in place well before the transaction closes. This planning process should include thorough diligence to verify the plan's feasibility and to ensure that the proper resources are in place.
There should be a manager team 'deal champion' who proactively guides the deal process to completion and collaborates with advisers during the assessment phase is essential. This helps to avoid the common mistake of losing interest during the M&A process, which could cause deals to fall over in mid-process.
To speed up and improve the M&A process, it's important for businesses that acquire them to have the proper understanding of the capital markets. With PitchBook's reliable and impartial data, companies can better substantiate valuations, focus conversations, and facilitate efficient M&A processes.