Thinking M&A or Divestiture? We’ve Got Answers in Our M&A FAQ

Jim Ryan low resby
Jim Ryan
Managing Director – Leader, Protiviti’s Mergers & Acquisitions practice

 

We recently published our M&A FAQ Guide and the timing could not be better. M&A activity, including carve-outs and divestitures, is on the rise around the globe as organizations sharpen their strategic focus. Yet, as noted repeatedly in articles in Forbes and the New York Times, among other media, the majority of companies fail to realize the desired value of their transactions. Why? Simply put, organizational responses are not comprehensively designed to match the complexity of an integration or separation.

Our M&A Guide offers considerations that may better prepare your organization. Mergers and acquisitions tend to be corporate-wide initiatives that, by their very nature, are sprung on employees with little analysis of people, process and technology interdependencies. Additionally, planning is rushed, runways for execution are shortened and key personnel become overcommitted. Our guide can accelerate your M&A activities by providing insights for many of the key challenges that organizations must solve to meet expectations.

For a glimpse at the guidance we offer, consider five questions to ask about your M&A activity:

  1. What is a typical deliverable of the due diligence team?
  2. Have we sufficiently defined the scope and change control process?
  3. How do we structure the team without detracting from daily business demands?
  4. What are the unique issues facing Finance, IT, Marketing and Sales?
  5. What are the key risks?

To make a merger or divestiture succeed, you must align the growth strategy with your corporate strategy; identify the right markets and targets; define and execute thorough, fast due diligence; prepare a detailed plan by phases; and follow up with well-resourced execution.

While nothing replaces focused thought and aggressive action, the information in our guide can help sharpen your focus while reducing risk, improving your chances of realizing desired value – and maybe get a little sleep.

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