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The Road to Successful Deal Execution

The excitement of negotiating a deal is one of M&A’s most exciting moments. But that’s only the beginning of the long road to successfully integrating the new entity and delivering the financial results that are expected.

Companies that acquire companies usually evaluate their deal success against the targets of synergies and revenue growth they set for themselves prior to the acquisition. If these goals are met or exceeded, the buyer believes that they have succeeded in generating value through M&A. But the reality is that these accomplishments typically come at a cost to existing business momentum and efficiency of operations.

To avoid this, the acquiring companies should ensure that a solid integration plan is in place prior to the deal is signed. The process of planning must include thorough due diligence to test the plan’s feasibility and ensure that the right resources are in place.

It is essential to have a “deal champion who is an employee of the management team that drives the deal through to completion. They should also work closely with advisers during the evaluation phase. This helps to avoid the common problem of losing interest in the M&A process, which could cause deals to fall over in mid-process.

In order for companies to acquire companies to speed up and enhance their M&A processes, it’s important to have the right insight into the capital markets. With PitchBook’s objective and reliable information, companies can more effectively justify valuations, focus conversations, and facilitate efficient M&A processes.