Should every large and midsize company have a team or person dedicated to M&A?

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    David Castell

    For mid-size companies, only if they would be frequently involved in M&A activities (prospects and/or acquisitions), having at least one dedicated person would correct. This person could dedicate time to prospect searches and being the main contact person for banks and equity firms regarding M&A activities.
    For big-size companies, frequently involved in M&A activities, most probably a full dedicated team would make absolute sense to act quickly and methodically once opportunities would come-up.



    In my current company we have dedicated M&A team, but we are not so structured when it comes to integration. Efforts are starting to be made to also ensure we have people who are dedicated to the integration efforts when doing M&As. I consider the latter team to be at least as important as the M&A team – who in our company has little focus on PMI. But whether to have such teams I think, really depends on your strategy. If you have a strategy that includes inorganic growth then it makes sense, but if you have never done M&As and have no intention of doing one, then it makes little sense to have people dedicated for this effort I think.



    Fully agree that an inhouse M&A team has absolute added value. The inhouse team has a good insight in its comapny and makes the perfect link with third parties.


    Mohd Hafizuddin

    I think that would be a good idea, but what is more important, in my opinion, is to have a diverse M&A team with different education background ie finance, accounting, law, economics so that they could complement each other.



    It would depend on the stage of the company and level of growth expected by the key management. If the company is using acquisition as a method to grow, it would be very active in seeking out targets and would require a dedicated M&A team. Otherwise, if it is only concentrated on acquiring start-ups, the company can assemble an in-house team for the due diligence and integration period among its existing pool of staff. Alternatively, an external consultant can be hired when a potential M&A deal arises and due diligence or integration issues have to be solved.

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