One of the many ways for businesses to grow rapidly is through the Mergers and Acquisitions (M&A) route. There can be several scenarios and reasons for a firm to consider M&A: firstly, to increase business turnover by merging with or taking over a firm in complementary business line; increase market share by taking over a competitor; with surplus cash, more profitable opportunities can be explored by acquiring outside firms for better returns; a need for survival – loss making, declining businesses may need to make hard decisions to ensure survival and more.
M&A deals are often quite complex and challenging to complete – regardless of the size of the businesses involved. Some deals fall through before completion – and those that are completed may or may not be considered a success. Conducting a thorough investigation during the due diligence stage can help reduce the risks of failures. It is during this stage that a buyer will try to get to know, as clearly and comprehensively as possible, who the target company is – and vice versa. There are many issues to be addressed and a great deal of information to gather.
Through this coaching session, you will be able to:
- Determine the suitability of M&A strategies for your business
- Establish the potential risks involved in an M&A transaction
- Plan various outcomes and scenarios involved in an M&A negotiation
- M&A as a strategy in your entity’s corporate strategy and growth policy
- The processes involved in M&A, including target identification, due diligence, negotiation and implementation
- Common tools and techniques in valuation including estimation of synergies and determination of premium
- Deal structuring, financing options, including method of payments
- Specific issues in corporate restructuring, private equity and leverage buyouts, cross-border acquisitions and post-merger integration
- M&A roadmap for your business