M&A 

Mergers and Acquisitions 

PremiValor Consulting has been involved in several mergers and acquisitions (M&A) processes, either through selling mandates or through acquisition mandates.

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Why M&A?

  • Different forms of synergies

  • Growth / Diversification

  • Strategic realignment

  • Hubris

  • Undervalue assets

Why M&A?

  • Managerialism

  • Tax issues

  • Market power

  • Misvaluation

  • Value creation

Why do M&As Fail?

  • Limited involvement of the owner

  • Incorrect valuation of the transaction

  • Faults in the integration process

  • Differences between business cultures

  • Lack of resources needed for integration

  • High recovery costs

  • Mistakes in negotiation

  • External factors

  • Lack of contingency plan

Why do M&As Fail?

Studies conducted on the outcome of M&As show that 30% of them fail within three years

The Importance of business culture compatibility

Culture consists of the long-standing, largely implicit shared values, beliefs, and assumptions that influence behavior, attitudes, and meaning in a company (or society).

Culture affects various corporate aspects such as:

The due diligence process

During the due diligence process the focus is usually on measurable metrics, such as financial data and legal questions. Only after the transaction is completed is the management team concerned with cultural compatibility.

Most managerial teams address this problem by defining a set of desirable cultural attributes and then encourage employees to adopt these attributes in their daily tasks. However that comes with the time pressure to deliver results to shareholders.

This pressure for results does not afford the time for a detailed cultural diagnosis or a long-term culture change project with uncertain prospects of achieving the desired goals.

 

This can be tackled by a more balanced approach, identifying the high-risk points and working with employees to mitigate the impact of these points.

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There are several strategies to put this approach in practice:

Premivalor M&A experience

Sell-side advisory


We have extensive experience in the selling process of companies and businesses, supported by a senior team that facilitates trust between parties and the identification of the right buyer.
 

 

Buy side advisory


We help clients address the most important strategic decisions when it comes to buying a company or business ensuring sound growth strategies, including the financing operation. Our senior experts take you smoothly through the full scope negotiation and decision process, leading the planning, execution and deal-close of the transaction.