Tag archives: integration

5G technology driving M&A activity in the telecommunications sector

The much anticipated rollout of fifth-generation wireless (“5G”) technology and changing consumer habits are expected to drive M&A transactions in the telecommunications sector over the next year. According to EY’s May 2019 Global Capital Confidence Barometer (the “EY Report”) 55% of telecommunications executives expect to actively pursue acquisitions in the next year, a significant increase from the long-term average of 45% for the telecommunications sector.

As consumption patterns for video and gaming continue to change telecommunications executives are anticipating the impact that future 5G speeds and capacity will have on adjacent industries like mobile streaming services … Continue Reading

“DARQ” technology and disruptive M&A: gearing up for the “post-digital era”

As technology has become embedded into most parts of our lives, the majority of companies have completed a digitization process. Maintaining a digital platform has become the new norm, and increasingly sophisticated technologies continue to be developed. Accenture’s Technology Vision 2019 (Vision Report), describes this as the transition to the “post-digital era,” where “digital” is a new normal and is no longer a sign, on its own, of innovation. The Vision Report highlights main technology trends that companies will need to get ahead of in order to become leaders.

The main questions related to this “post-digital shift” are; … Continue Reading

Digitalization – the pill for M&A failures?

It is a generally accepted fact that a significant number of M&A deals fail to deliver value post-closing. In a recent survey (the Survey) discussed in the Deloitte 2018 M&A trends report (the Report), 55% of respondents agreed that up to 25% of their M&A deals fall short of meeting or beating expectations. We’ve discussed the factors that can contribute to this failure on a previous blog post and in a recent article, including: cultural and business integration issues, poor due diligence, negotiation errors, lack of involvement by owners, and an overall lack of clarity. Moreover, a … Continue Reading

Using M&A playbooks to avoid post-closing issues

Companies spend more than $2 trillion on acquisitions every year, yet many acquisitions ultimately fall short of expectations. There are several reasons why a transaction may not turn out as planned, but oftentimes the culprit is poor post-closing integration. While most transactions are given a great deal of attention until the day of closing, the same degree of attention doesn’t always continue past the closing date to include a post-closing action plan.

How can an M&A playbook help?

M&A playbooks can dramatically help companies reach their transactional goals, especially corporations that routinely engage in M&A transactions. An M&A playbook is … Continue Reading

Culture: its impact on successful M&A

Deal Law Wire - Norton Rose FulbrightA clash of cultures is one factor that contributes to unsuccessful mergers and acquisitions after closing. Often, management tends to be so focused on other aspects of a successful transaction that the integration of culture is overlooked.

What is culture?

Culture refers to a set of values and beliefs that inform the behaviour and attitudes of a workplace. In Professor James Heskett’s book, The Culture Cycle: How to Shape the Unseen Force that Transforms Performance, he explains that culture can account for 20-30% of the differential in corporate performance between competitors. Culture can increase the rate of employees that … Continue Reading

Set up for success? Difficulties in M&A integration

In a previous post, we discussed the impact that deal team size can have on post transaction synergies. A recent report from PwC makes clear that pitfalls in the M&A process hardly disappear once the parties have determined the make-up of their deal team. Indeed, the report suggests that without early planning, rapid execution and long-term commitment to integration completion, it will be difficult for a merger or acquisition to achieve its goals and deliver value. In an era of growing workplace diversity where numerous industries are undergoing digital disruption, this can be easier said than done.

Transformational change

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Capturing value in M&A

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This year has seen a resurgence in deal–making activity around the world. This resurgence is being fueled by cheap debt, increased boardroom confidence and the return of growth after the 2008 financial crisis. With this growth in activity comes increased pressure to ensure that the deals completed generate the maximum value as competition and pricing are running high. With the question of what separates the deals that capture value to the deals that do not, Crowe Horwath LLP and Mergermarket teamed to develop a recent study in which corporate deal-makers divulged important differences between successful and unsuccessful transactions – Steering Continue Reading

Integration planning leads to integration success

After conducting interviews with M&A practitioners in North America in mid-market companies, in its report titled “Harnessing Potential: mid-market integration and managing change”, Mergermarket found that operational integration early in the process and focusing on the culture of companies being merged or acquired can not only make a deal run more smoothly, but can actually increase deal value.

In an M&A transaction, the integration process is key. In Mergermarket’s study, 47% of respondents reported that they started to consider merger integration strategies during negotiations. As well, 73% of companies had an integration plan completed prior to the deal … Continue Reading

The who, what, where, when and why of PMI

As discussed in a previous blog post, a successful post-merger integration (PMI) can allow an acquirer to realize the full value of the transaction. However, PMI is often an underestimated challenge. Recent publications released by Mergermarket and PwC consolidate the views of M&A experts and discuss best practices when engaging in the PMI. Below we discuss these publications’ key takeaways.

When should integration begin?

The best practice is to start thinking about PMI as early as possible, even before proposing the transaction. Considering PMI during the inception of the deal and during due diligence will allow dealmakers … Continue Reading

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