The excitement of signing a deal is one of the most exciting times in M&A. But that’s only the beginning of a long road to integrating the new entity, and delivering the expected financial returns.
The targets they set themselves for revenue growth and synergies are frequently used by companies that acquire them to assess the success of their deals. When these targets are met or exceeded, the buyer believes they have succeeded in creating value through M&A. However, the reality is that these successes often come at the expense of existing business momentum as well as operational efficiencies.
In order to avoid this, businesses that are acquiring must ensure they have a clear and established integration plan in place before closing. This planning process should include detailed due diligence to determine the feasibility of the plan and ensure that the right resources are in place.
It is crucial to have a ‘deal champion who is someone on the management team who is responsible for driving the deal through to completion. They must also collaborate closely with advisers in the assessment phase. This will help avoid the mistake of losing interest during the M&A process, which can result in deals being canceled during the process.
To speed up and improve the M&A process, it’s important for businesses that acquire them to be aware of the capital markets. With PitchBook’s reliable and impartial data, businesses can better support valuations, improve discussions and improve the efficiency of M&A processes.