Mergers and acquisitions have transformed industries and often represent an opportunity to increase market share or consolidation within an industry sector that has become saturated.
Despite the usefulness of this strategy, the truth of the matter is that fewer than half of all mergers succeed. Monex Financial has concluded that mergers are more likely to fail as a result of weaknesses in the process of integration than any fundamental flaw in the strategic concept.
In matters of this nature, time is of the utmost importance. Delays between the announcement of the transaction and finalization can serve to erode the perceived and actual value of the merger. Positive reception by markets can quickly give way to consternation and doubt over the merger’s viability and, where applicable – the impact on shareholders.
In the worst cases, this can result in employee migration, loss of confidence by suppliers and customers and even sell-offs in company stock.
Monex Financial professionals are supremely qualified to advise on the preparation of mergers. We can conduct due diligence on target companies, gauge sentiment among shareholders, evaluate the integration of systems, processes and also identify areas that represent a potential barrier to timely completion.
We firmly believe in the merits of sharing information between the two entities and advocate the implementation of a central platform for communication which can often expedite the speed of assimilation.