M&A Tag

Over-preparation, which usually manifests itself in extremely detailed, all-encompassing, grand plans, is a hazard that can arise particularly where integration leaders have previously burnt their fingers from  ‘being taken by surprise’ by unexpected events. Understandably, they attribute this to having been previously under-prepared, and instead...

I’ve just left the 5th Merger Integration forum held by Thought Leader Global in Amsterdam.  Over the past 10 years or so I've been to many such conferences - both by TLG and others - and although the economic downturn has seen fewer conferences run, I was interested to note some differences emerging from what I'd have experienced just a couple of years ago.

Everyone knows that lawyers – whether in-house, external or a combination of both – are key to successfully conducting M&A. Less well recognised is the positive role they can have in helping identify, understand and tackle integration and other post-close issues. This applies as much to in-house legal teams as it does to the supporting law firms, both of whom tend in my view to stay too much within their comfort zone. The value of lawyers across the deal spectrum can come not so much from what they do, as what they see along the way. Consider the following typical areas of legal M&A support pre-close:

I just finished reading The Perfect Prey, which I mentioned in my previous blog. The next book on my reading list is already chosen and it's not about Mergers & Acquisitions or another business topic. This time it is a novel in which the main character is faced with a highly impacting change in his personal life. I find myself inspired by (amongst others) business books, novels and classic literature. The topics and influences of each genre are very much interchangeable and can be applied to everything you do, regardless of situation, place and time.

Distressed businesses have usually bagged all the low-hanging fruit in their previous attempts to save their business. This leaves the hard work to the acquirer. Picking up the pieces may be easy; getting them back into a working state is a challenge. That’s why they're cheap.  Unless the value centres around untapped capabilities only you can exploit, the safer guide is that the lower the deal price on offer, the harder it may be, ultimately, to deliver results with the acquisition. This is the final part of our three-part series

[caption id="attachment_263" align="alignleft" width="150"]Distressed M&A Part 2[/caption] Distressed businesses have usually bagged all the low-hanging fruit in their previous attempts to save their business. This leaves the hard work to the acquirer. Picking up the pieces may be easy; getting them back into a working state is a challenge. That’s why they're cheap.  Unless the value centres around untapped capabilities only you can exploit, the safer guide is that the lower the deal price on offer, the harder it may be, ultimately, to deliver results with the acquisition. This series of articles (this is part two of three) examines the world of distressed M&A.

[caption id="attachment_263" align="alignleft" width="150"]Distressed M&A Part 1[/caption] Distressed businesses have usually bagged all the low-hanging fruit in their previous attempts to save their business. This leaves the hard work to the acquirer. Picking up the pieces may be easy; getting them back into a working state is a challenge. That’s why they're cheap.  Unless the value centres around untapped capabilities only you can exploit, the safer guide is that the lower the deal price on offer, the harder it may be, ultimately, to deliver results with the acquisition. This series of articles (3 parts) examines the world of distressed M&A.

Unpredictability in M&AIn a recent editorial by Acquisitions Daily, this item caught our eye: Write-offs to hit big mining deals.  Following the US$14bn loss on acquisitions that cost Rio Tinto boss Tom Albanese his job last week, further write downs on investments at the other largest mining companies in the weeks ahead seem sure to curb strategic M&A activity in the sector in the near-to-medium term. As the prices of base metals continue to fall while costs continue to rise, Rio’s leading rivals will be forced to follow its example over the next two months – with nickel and aluminium assets particularly vulnerable.
 

[caption id="attachment_215" align="alignleft" width="150"]Culture; M&A; Integration To see or not to see...[/caption] I saw this case study about cultural fit in an M&A by Mary Teresa Bitti – the company in question is Vancouver-based The Little Box Company. It’s great to read a case study where cultural considerations are a key part of an acquisition strategy. All too often it’s in the bloody aftermath of why it didn’t work, or return the value expected, that ‘cultural incompatibility’ is cited as a main factor.