Advantages of M&A Management Software for Different Industries

Although M&A management seems very tempting from a business point of view and is psychologically beneficial, most of these transactions turn out to be mistakes that come with a heavy price.

The Positive Scope of the M&A Management Software

Each project is unique in its own way. From the interesting: one project somehow ended very suddenly. Shareholders have long agreed on the price and structure of the transaction, and we reviewed the finances. Based on the identified risks, we discussed ways to minimize them, etc. Everyone was happy with everything and the deal was moving towards signing and closing deals. At one of the meetings with shareholders, we raised the issue of off-balance sheet liabilities and again received verbal assurances that they do not exist.

Companies often look at acquiring new businesses only as a way to gain value – for example, the opportunity to enter a new market or acquire new knowledge and skills. But if you see the value of the company you’re selling, so do others, and by upping the ante against the competition, you risk paying so much for it that it will ruin you.

The scope of the M&A management software procedure is very extensive, including:

  • In mergers and acquisitions.
  • In the case of portfolio investments (when acquiring a block of shares or a stake in the company that is the object of the transaction).
  • When issuing the credit or borrowed funds.
  • When creating joint ventures.
  • In transactions for the acquisition of real estate.
  • When attracting large investments (in particular, through an IPO).
  • To create a system of protection against a hostile takeover.

In general, it is quite difficult to carry out the M&A management for an offshore company, but it is possible for the purposes for which offshore companies are used. At the same time, since the corporate legislation of offshore jurisdictions is fundamentally different from the traditional onshore corporate legislation, the task of Due Diligence should be entrusted to a specialist. Perhaps, in some cases, instead of a painstaking check of an offshore company, it will be safer to register a new company, where to transfer the assets.

The Main M&A Project Management Tools

Analyzing the practice of M&A management tools, both domestic and foreign researchers single out HR risks as one of the most serious ones, associated with:

  • an increase in uncertainty due to the lack of a real strategy for further work and
  • increased anxiety of employees and confusion of managers.

Negative phenomena of M&A project management tools are especially typical in hostile takeovers, because the acquiring party often underestimates the potential costs of integration, restructuring the management system, creating a new image, etc. Integration really requires a lot of effort, including, of course, the efforts of HR managers.

The main purpose of the M&A management procedure in each of the above cases is to assess the existing and possible future risks associated with the activities of the audit object, however, in each case, the scope, methods, and main focus of the audit may vary. The development and deepening of digital competencies of citizens for ensuring their readiness to take advantage of digital opportunities, as well as overcoming the associated risks.

The M&A management is designed for specific jurisdictions of particular interest. You can order additional online research aimed at identifying potential key regulatory and litigation risks associated with anti-corruption and anti-money laundering policies. For more information about the extended risk indicator screening and the jurisdictions for which this service is available, please contact the staff.

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