{"id":1903,"date":"2017-09-15T10:27:54","date_gmt":"2017-09-15T08:27:54","guid":{"rendered":"http:\/\/graftoncorporate.com\/?p=1903\/"},"modified":"2017-12-12T11:32:47","modified_gmt":"2017-12-12T10:32:47","slug":"critical-issues-showing-up-in-ma-transactions","status":"publish","type":"post","link":"https:\/\/graftoncorporate.com\/en\/critical-issues-showing-up-in-ma-transactions\/","title":{"rendered":"Critical issues showing up in M&#038;A transactions"},"content":{"rendered":"<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.1\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.1.0\">A M&amp;A transaction is a very complex sale\u00a0process. In order to ensure the success of the deal closing, there are a number of issues to be considered. These\u00a0are commonly related to the research and deal\u00a0execution process\u00a0and the alignment with\u00a0the corporate strategy.<\/span><\/p>\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.3\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.3.0\">As acquirers, we must be ready to identify\u00a0these issues with an experienced team in M&amp;A.\u00a0A\u00a0red flag operational and financial\u00a0Due Diligence is a very useful tool\u00a0to assess,\u00a0in a very early stage,\u00a0whether\u00a0the acquisition is feasible and adds value.\u00a0<\/span><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.3.1\">Most of these issues\u00a0fall in a couple of areas as shown below.<\/span><\/p>\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.5\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.5.0\">Unclear Corporate Strategy &amp; Research\u00a0may drive in acquisitions of a non-fitting target companies:<\/span><\/p>\n<ul class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6\">\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.0\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.0.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.0.0.0\">Unclear corporate strategy\u00a0objectives on the inorganic growth process<\/span><\/p>\n<\/li>\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.1\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.1.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.1.0.0\">Improper research of targets fitting in the corporate strategy, which can affect to the Post Merger Integration process<\/span><\/p>\n<\/li>\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.2\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.2.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.6.2.0.0\">Failure on targets assessment,\u00a0strategic or operational fitting, valuation and\u00a0deal structure<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.8\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.8.0\">Limited capabilities and resources during the execution process:<\/span><\/p>\n<ul class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9\">\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.0\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.0.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.0.0.0\">Unrealistic process planning,\u00a0inadequate time and resources allocation<\/span><\/p>\n<\/li>\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.1\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.1.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.1.0.0\">Lack of access to quality business\u00a0information<\/span><\/p>\n<\/li>\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.2\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.2.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.2.0.0\">Limited experience, access and\/or miscommunication in the teams<\/span><\/p>\n<\/li>\n<li data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.3\">\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.3.0\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.9.3.0.0\">Effects on the cultural\/\u00a0language barriers and the execution process approach<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"font_8\" data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.b\"><span data-reactid=\".0.$SITE_ROOT.$desktop_siteRoot.$PAGES_CONTAINER.$centeredContent.$inlineContent.$SITE_PAGES.$tiv9t_DESKTOP.$inlineContent.$comp-irubhres.$inlineContent.0.$child.$0.$inlineContent.$1.$5.$0.$richTextContainer.b.0\">For further info on Corporate Development, relevant news on the marketplace, pls visit our website www.graftoncorporate.com and follow us up.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A M&amp;A transaction is a very complex sale\u00a0process. In order to ensure the success of the deal closing, there are a number of issues to be considered. These\u00a0are commonly related to the research and deal\u00a0execution process\u00a0and the alignment with\u00a0the corporate strategy. As acquirers, we must be ready to identify\u00a0these issues with an experienced team in <a href=\"https:\/\/graftoncorporate.com\/en\/critical-issues-showing-up-in-ma-transactions\/\">&#8230; [Leer m\u00e1s]<\/a><\/p>\n","protected":false},"author":2,"featured_media":1900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[69,71,68,70,73,58,72],"class_list":["post-1903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-acquisition","tag-integration","tag-mergers","tag-post-merger","tag-research","tag-target","tag-valuation"],"_links":{"self":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/posts\/1903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/comments?post=1903"}],"version-history":[{"count":0,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/posts\/1903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/media\/1900"}],"wp:attachment":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/media?parent=1903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/categories?post=1903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/tags?post=1903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}