The crisis caused by Covid-19 as lot of negative impacts, both in human and economic terms. But with challenge comes opportunity to grow. In fact, history shows that, in similar periods, the M&A processes (Mergers & Acquisitions ) were a good decision for Portuguese companies to growth.
According to the TTR- Transactional Track Record, up to September last year, 248 of these operations were carried out in Portugal, for the disclosed amount of 20.4 billion euros. To facilitate all the planning and execution of successful M&A processes, it is important to count on the help of qualified partners. Here are our expert’s key advises on how to carry out this operations in a successful way:
• Before negotiation: Have a clear understanding of the operation’s objectives, quantify synergies, economies of scale, market share growth, knowledge transfer, potential decreases in fixed costs, etc. A rigorous economic and financial analysis of the companies to be included in the process must be carried out in advance.
• During negotiation: Maintain an open mind towards the objectives of all parties involved. Build a plan for M&A, which takes into account the various operational dimensions of the business: new identity, new management and leadership procedures, possible changes in the organizational structure, management and retention of people, communication, relationship with stakeholders, among others. Involve the financial team in the whole process. Use IT platforms that allow the analysis of the KPIs of all companies under negotiation, in real time, in a totally transparent way.
• After the operation is completed: In the first 12 months, the focus should be on standardizing the corporate culture and formal and informal procedures within the new company. An internal communication plan, created specifically to address these issues is good practice. Many companies neglect this aspect, focusing only on the optimization of financial and management processes, which can hinder the good performance of the teams in the long run.
At Auren, we are aware of the challenges that companies face and we have integrated responses for each organization. Composed by a multidisciplinary and experienced team, Auren is on your side to value the results and strategies of your company. Contact us for more information.
Paulo Lopes Porto, Consultancy Business Development from Auren Portugal