4 tips for effective M&A
As they say, money to spare loves good care. While mergers and acquisitions (M&A) love caution. Rightly so, they can scuttle even after the smallest of mistakes no matter how insignificant they may seem at first sight. To prevent this, we offer you 4 simple recommendations. Or, rather, reminders of what you should and should not do in preparing the mergers and acquisitions.
- Incognito status is paramount
At the initial stages, it is necessary to maintain secrecy. The fewer people know about the upcoming transaction the better. After all, gossip travels fast and it is rare to be found true. In our case, a couple of carelessly spoken words is enough to jeopardise the entire endeavour. To minimise the risks, one should have an effective communication strategy developed. It should contain nearly a second-by-second information on what, when, and whom to speak to, especially when it comes to journalists. A contingency plan is ought to be written separately should a contingency such as media leaks occur.
- Maintain the consistency
Improvisation is a good thing, but it is better to leave it out of the business. Forethought is more paramount in this case. Therefore, one should thoroughly develop each stage of the transaction, create a detailed plan updating it with the new data that occurs as a result of yet another talks and so forth. It will help the entire staff engaged in preparing the transaction to get a better grip on the situation and maintain a consistency in their announcements during negotiations and communication with the media. Moreover, you can take advantage and use all these internal documents as statements for shareholders and investors. This way, they will always be aware of everything and the company will prove the transparency of its intentions once again.
- Speaking of transparency
Many companies are unwilling to disclose their M&A data so as not to attract the excessive attention of regulators, etc. However, there are many ways to tell about the upcoming transaction without touching on the financial aspect directly. For instance, by using analytical reviews and market studies or publications of management’s opinion on the transaction.
- Focus on content
Keep in mind that different audiences need different content. For example, investors are interested in potential risks, benefits, opportunities from mergers and acquisitions. The clients, however, feel much better knowing the impact that the upcoming expansion makes on its range of goods, services, and the pricing policy. Therefore, one needs to carefully select the publication topics and create publications according to their intended purpose. Digital marketing tools are especially ul here.
Also, do not forget that in M&A transactions, it is vital to structure the transaction through a non-resident in the English law to minimise the tax and legal risks, as well as the FDD, LDD, and Valuation procedures.
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