5 Tips on How to Succeed in M&A deals and financial arrangements

BLOG May 19, 2016 - Petri Ojala

5 Tips on How to Succeed in M&A deals and financial arrangements

M&A projects are often displayed through very technical means and process diagrams. Projects are constantly changing and companies must be able to react to different situations – sometimes very quickly, creatively and from completely new angles. Below are a few observations on how to succeed in these projects.

  1. Prepare adequately for the project.
    It is important to prepare and inform decision-makers and other stakeholders early enough in order to obtain their valuable feedback. Anticipate the various stages of decision-making and the motives of the different stakeholders. This applies both to your own decision-making abilities and the other parties’.
  1. Entice stakeholders with the story you tell.
    The development of the project must be purposeful and the manner in which potential buyers, sellers, owners, financiers, organizations and other stakeholders are approached must be examined and tailored to the specific transaction. Great ideas might be foregone, if the ideas are presented in the wrong way, in the wrong order, or to the wrong party. The project needs to attract the stakeholders with its story.
  1. Keep the core team small and don’t get stuck on the first idea.
    Do not trap yourself into the first view of the situation and always be open to change. Also, it is often good to inform stakeholders that your first view is indeed preliminary and that it will almost certainly be adjusted later! This adjustable view could be, for example, the preliminary valuation of the company, the target company’s strategic suitability or the transaction financial structure. Furthermore, keep in mind that the more stakeholders there are in a given project, the more likely it is that changing the preliminary view will be difficult.
  1. Be agile and ready for changes.
    The process and the decisions that you make should be as adaptable as required. This may mean, for example, that the project might change into a two-way conversation or conversely, that discussions are extended to additional stakeholders, changes can happen with scheduling, or a completely new type of financing solution or business structure could be created.
  1. Be ready to give up on the deal.
    Sometimes it is better to abandon a project even during the process – it is important to recognize that the more time, effort and money you spend on a specific project, the more difficult it is to abandon it, regardless of its expected outcome.
Share:Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+