Post Investment Appraisal & Assessment

This topic contains 2 replies, has 3 voices, and was last updated by  Carl Esterhuysen 3 days, 3 hours ago.

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  • #124055

    Fahad Aziz
    Participant

    It is paramount any inorganic structuring / investment through M&A is followed up through key processes to ensure value is realized as anticipated. Post investment appraisals need to focus on quantitative value creation through integration / improvements / synergies and qualitative value acceptance through cultural camaraderie. Please share your views and opinions / experiences.

    #124404

    James Elding
    Participant

    I like this point and I was on one project (divestiture) that was viewed as a complete failure my the investment community. In one year the stock price went from about 28.00 per share to under 1 dollar. The company was in fact at risk of being delisted on the NYSE. One CEO of a private equity fund lost millions and called for the resignation of the CEO. Performance of the company never measured up to what was promised pre-divestiture.

    #124590

    Carl Esterhuysen
    Participant

    In my experience this is an area that is often neglected, especially if the deal was less successful. It will be largely impacted by the tone set at the top and the culture of the company. Synergies are often not well defined, values attributable not clearly understood or post investment appraisals are not done independently.

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