Uncertainty in M&A opportunities

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  • #51949
    Abdullah Aziz

    Usually, M&A transactions come in a limited timeline and limited data as well. Usually, one of the findings in each due diligence area is a limitation in data and uncertainty in different aspects.

    My question is how to protect the buyer or minimize the impact of the uncertainty?

    Ali Alsudairi

    By understanding the business that you are going in and (the complete value chain) as well as understanding how each potential scenario of “uncertainty” could impact the business.

    Mohammed Aldubayyan

    the more DD you do, the more you can reduce uncertainty and its impact

    Vahid Sharif

    Uncertainty is major reason of failure in M&A deals. We use lots of assumptions in valuation and synergy modelling. We should not ignore human factors in post merger integration which don’t have unique mathematical models. We can’t eliminate uncertainty, we only can reduce uncertatities and shift consequences from fatal errors to correctable errors. We should have solutions for all probable cases based on probability of occurrences

    David Widmer

    DD may also provide insights on how to mitigate uncertainties. During the DD you will discover various issues and risks – knowing them is the first step in mitigation.

    Kishore Ganesh

    Deal flow slows down but valuation holds steady
    A shift towards regionalism builds gap in bridges
    Alternative deal structure becomes common place

    Abdulrahman Aloyoni

    The buyer is protected by appointing independent consultants who have deep experience in managing and examining the due diligence process.

    Glenn Choo

    I agree – normally, companies can’t really do the due diligence by themselves. One of the “consultants” they can hire are the investment banks that can coordinate the due diligence with the lawyers, accountants etc.

    Daniel Stocks

    Really informative post here, and some great responses.

Viewing 9 posts - 1 through 9 (of 9 total)
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