M&A: The New Rules of Mergers and Acquisition – 5 Tips!

The Point: Considering mergers and acquisition is the general counsel of the company that has an advantage to identifying the players who will form his team in advance. Lawyers have a big role to play in M & A transactions, in which if it’s done badly it could be lower the value rather than to be high.

M&A The New Rules of Mergers and Acquisition 5 Tips!

5 Tips (or Rules) to Follow for Successful Mergers and Acquisitions

Often essential for a company’s revenue column, mergers and acquisitions must be done in the right way. Here are five rules to be verified for your mergers and acquisitions activity:

Tip #5: Establish a dedicated transaction team before even targeting one

The timeline for completing a merger or acquisition is often very tight. The firms that will be used, the market specializes in transactions between listed companies and Legal services to reduce costs and since more and more transactions are cross-border, it is a good idea for a head of legal build relationships with colleagues around the world.

Tip #4: Pay special attention to regulatory the issues

In the new rules of merger and acquisition once should pay the special attention to regulatory the issues. Rarely does a merger stumble because of a regulatory barrier, but if you wait too long before you evaluate that risk, it’s bad. The experts are unanimous: Advocates-General must ensure that no one in-house is committing a blunder causing a regulatory incident.

Tip #3: It is also necessary to have a team that will integrate the companies

If it is not necessary to put the cart before the oxen and operate as a single entity before having flattened all the obstacles, it is nevertheless necessary to foresee its blows in advance. A team is therefore responsible for identifying the departments whose operations will be merged and which departments will not be merged.

Tip #2: Do not be afraid to say no

Mergers and acquisition transactions are relationships that grow and require companies to redefine themselves. If the transaction risks losing value rather than creating it, it may be better to retreat.

The fact is that the teams negotiating the transaction are so focused on the realization of the deal that they sometimes do not have the necessary distance to notice the problems that arise during due diligence. These problems are sometimes manageable by changing some of the terms of the initial agreement, but they are sometimes too important to ignore.

Tip #1: Take lessons from each transaction

The more we make, the better we are especially if you take the time to take stock after each transaction. What worked well? What were the problems? Why? This provides equipment for creating lists of things to check during the next transaction. And one avoids repeating the errors.

SUMMARY

In this post, we’ve explored mergers and acquisitions and what I consider to be the new rules of therein that can provide detailed information and new phases to consider along with 5 tips (or rules). Success often comes from repeating successful processes, but can also come from conducting autopsies of failed activities.

Sam Palazzolo

PS – If you or your organization are challenged as a result of M&A activity, please don’t hesitate to drop me a line and request future post titles! Here are a few of the other M&A titles previously published/in the works:

Will Your M&A be a Success of Failure?

The Importance of a M&A Strategic Plan – 3 Tips!

Mergers & Acquisitions – Six Diversification Questions

M&A: Is Leadership Transparency the Key to Success? – 6 Tips!

– How to Successfully Survive Mergers & Acquisitions

– M&A: Creating Shareholder Value

– M&A: Should You Go For Stock or Cash?

 

About Sam Palazzolo, Managing Director

Sam Palazzolo is Managing Director at Tip of the Spear Ventures, an agile Venture Capital and Business Advisory Services firm specializing in Mergers & Acquisition, Sales / Business Development & Turnaround Management.