Finance

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  • #105455
    Jamie M
    Participant

    How can the board ensure effective financial oversight during an M&A process?

    #119519
    Peter J. Gondek
    Participant

    One crucial way the board can help ensure financial oversight during M&A is by actively challenging deal assumptions and expected synergies.

    Questions the board should be asking are:

    – Are management’s revenue and cost assumptions realistic?
    – Are the synergies reflected in the projections reasonable?
    – Is the integration plan likely to deliver the synergies over the long term?

    The Board must ensure the management team is stress-testing their assumptions and projections. This includes running different scenarios through their financial models.

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