The success rate in Mergers &Acquisitions has been very appalling. It’s is estimated that only one out of 10 M&A is successful. It’s therefore very important that we need to be very vigilant at each stage of the M&A process so that we are able to address those potential pitfalls revealed in the Survey of Forbes 500 CEOs
Pre-Deal planning stage
Potential Pitfalls · Incompatible marketing system · Need to spin off or liquidate too much | Key Areas to focus on to Prevent failures · Formulating strategy · Developing the business case · Reviewing alternative options · Identifying targets · Initial assessment |
Doing the deal:execution stage
Potential Pitfalls · Acquirer paid too much | Key Areas to focus on to Prevent failures · Evaluating the target · Structuring the transaction · Price assessment · Supporting negotiations · Due diligence · Regulatory approvals |
Post-merger integration
Potential Pitfalls · Inability to manage target | Key Areas to focus on to Prevent failures · Establishing the strategic framework · Developing integration plans · Communications · Implementing plans · Establish key performance metric in the form of a balanced scorecard |
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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