What are the top 10 issues in M&A transactions in present day?

This topic contains 15 replies, has 15 voices, and was last updated by  Dmitry Govorov 3 months, 3 weeks ago.

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    Hannah Barber

    What are the top 10 issues in M&A transactions in present day?


    Kevin Ng

    1. Covid has made it harder in my opinion to close on cross border deals as it is very unproductive to travel to the target’s country for due diligence and negotiations. Negotiations over zoom are no replacement for face to face negotiations


    Leslie Tan

    Information overload, with raise in getting information being readily available online compared to the days of past, the ability to filter right information for analysis is tricky.


    William Yong

    Creating value for the acquiring company especially when we tend to over-value



    Lack of proper Intellectual Property assessment and audit by the acquirer on the acquiree.



    Undervaluing the importance of culture match and the lack of linkage between deal parameters/decisions/objectives and the integration planning.



    Lack of sustained interactions between the deal team, deal decisions and integration phase. This leads to less than optimal decisions and puts synergies at greater risk of being realized.


    Linda Castle

    Uncertainty in times of pandemic (when will it really end?) and lost value during restriction times.


    Terry Koh

    It would be performing due diligence in cross border transactions, being able to see the actual business in real life rather than over zoom.


    Christian Münnich

    Cultural differences


    Failure of effective human capital due diligence – among the top 5 if not the #1 reason for deal failure in the 1-3 year period post-transaction close. Of course, Human Capital Due Diligence has numerous steps and components, any one or combination can be a cause, so likely more than one of the top 5 and absolutely more than 2 of the top 10 issues are directly attributable to Human Capital Due Diligence.


    William Venus

    Overestimating deal synergies has to be among one of the biggest issues in today’s market. With capital at cheap rates and COVID driving innovation, small companies can command a premium on based on prior deal multiples of similar companies.


    Matthias Arnet

    Very interesting inputs. For me, the mentioned over estimation of synergies is one of the biggest issues, driving prices/premium.


    Sean Casault

    I think it’s been aptly pointed out already, but I would echo a couple of points:
    1) over estimation of available and expected synergies
    2) Erosion of value and value creation due to cultural differences
    3) Poor due diligence, particularly in the human capital components


    David Castell

    In the automotive sector I would add, not clearly knowing where the market is moving, which technologies will be applied, etc. are slowing down certain M&A decisions.

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