Lessons Learned During M&A Process

Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
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  • #59178
    Bonnie Sahni
    Participant

    Identify lessons that you have learned going through the M&A process

    #59562
    Charanjit Sodi
    Participant

    Below pointers are what I learned from M&A Process
    > Time priority
    > Due Diligence process and procedure to be handled carefully
    > Ensuring NDA is super confidential between NewCom and target company executives
    > Pricing and handling GTM post-merger should be a top priority (Ensuring new customer has company visibility and targeted company should not overlook them)
    > New employee from NewCom should not ver overlooked
    > Communication for full integration to all stakeholders

    #60042
    Cody Eberhardt
    Participant

    PEOPLE! When going through a M&A you need to remember that you are dealing with real people, it isn’t just a company. These people have lives and they depend on their job. They are going to be nervous and want to know everything that is happening with them. Remember, these people didn’t apply to your company, they didn’t necessarily ask to work for this new company. Be compassionate.

    #60143
    Hamood Alhajri
    Participant

    There are many lesson learned points. But I would list 2 significant some points:

    1- ensure to have access to the VDR any time.
    2- appropriate/organized repository to reduce the time for the crew when searching for documents.

    #60287
    Vahid Sharif
    Participant

    I had following experince from my last acquisition experience :

    1)increase my negotiation skills specially for price negotiations
    2) increase my personal M&A knowledge otherwise I should pay lots of money to legal advisors for tiny things,

    #60324
    Kishore Ganesh
    Participant

    Time

    If Multiple acquisitions are in plate then it becomes difficulty to manage priorities for an aggressive aspirations of PEG.
    Time is the enemy of all M&A deals for a seller. The price and terms typically only get worse if the process drags on, and there is the risk of the deal falling apart. New issues could arise that result in the price being lowered. The M&A process can take a very long time, and there has to be a driving force on the sell-side and timetable to get the deal to closure. It also helps for there to be a dedicated advocate on the buy-side of the deal to keep the deal moving along.

    Competitive Process

    One of the most important steps in accomplishing a successful M&A exit is to get multiple potential buyers interested. A competitive process helps ensure getting the best price and the best terms, and allows a company to fend off unreasonable requests from one bidder.

    Due Diligence Preparation

    Sellers have to understand that they will be subject to an extensive due diligence investigation, and they must be prepared in advance for all that entails. The buyer will want to see detailed financial statements, copies of all material contracts, information on key intellectual property, employee and benefit arrangements, and much more. Normally, the seller needs to have all of that information in an online data room, which can be quite time-consuming to get correct and complete. Sophisticated bidders will tell the selling company that preparing a comprehensive and well-organized online data room is important. The company will typically respond that it is organized and on top of it—but the selling company often doesn’t understand the enormity of the undertaking involved.

    #60355
    Lindsey LeClair
    Participant

    Hi Bonnie! Jumping on the time bandwagon – everything takes longer than you think it will so it’s important to be realistic when setting deadlines and creating schedules. Adding extra time for unforeseen competing priorities is also a really good idea.

    #60396
    Kishore Ganesh
    Participant

    Companies consolidate to remove excess capacity, increase market access, acquire technology more quickly than it could be built, develop new businesses, and improve the target company’s performance.
    Time is enemy.

    #61174
    Necole Ezell
    Participant

    Engage the IMO in due diligence and begin integration planning as soon as possible. If you are not starting integration planning until after close you will begin the acquisition at a deficit.

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