Mergers and acquisitions (M&A)

Incentives to complete an M&A transaction

There can be a variety of different incentives for completing a M&A transaction but the main reason for acquiring or merging with another company is to create value for the shareholders that exceeds that of the sum of the two companies. The key idea behind the M&A concept is that two companies are worth more combined than they are as separate entities and thus the expression ‘one plus one equals three’ is used. Examples of possible outcomes and thus incentives to complete a M&A process include:

Raising new capital for an expansion or a new investment
Leveraging synergies between your companies and competitors
Entering a new market and leverage on another company’s knowledge, portfolio, and market insights
Gaining quick and effective access to new technologies, intellectual properties, assets, etc.
Strengthening your company’s market position and/or efficiency
Disposing of underperforming assets or parts of the business

The role of Consilio Partners in a M&A process

No matter what the incentive and what kind of transaction you are facing it can either create great value for your company or it can destroy it – depending on the handling and execution of the deal. Succeeding with a transaction requires a very thorough consideration of all aspects related to the deal, making sure that nothing is left to chance. It is also essential to move quickly in order to achieve the expected yield. Thus, seeking assistance from an experienced M&A advisor can be a smart move ensuring you an efficient and well-thought-out process.

At Consilio Partners we have great experience helping our customers across a broad range of industries with various aspects of M&A processes on both sell- and buy-side, including: