Insights on Changing M&A: A Brief Overview

Discover the changing face of mergers and acquisitions with insights drawn from a Financial Times article, providing essential takeaways for anyone involved in the dynamic world of M&A transactions.

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Sharing a post from Financial Times that describes fundamental changes to the landscape of mergers and acquisitions (M&A) over the past 15 years.

Both buyers and sellers should take note:

▪️ Lawyers are now involved earlier in the M&A process, participating before the letter of interest is even sent, and they focus on closing certainty and risk allocation.

▪️ Buyers now prioritize the fundamentals of the target company, which marks a shift in buyer priorities as they move away from a sole focus on asset gathering.

▪️ Regulatory changes have led to increased fee transparency, which has prompted a reorientation in what acquirers seek.

▪️ Acquirers now assess intellectual property protection, customer access, revenue fit, and employee access of the business being acquired.

▪️ Cultural fit is now a crucial factor as well, and it has caused some buyers to walk away from potential targets.

▪️ Valuations are now less tied to market expectations, and are becoming more focused on specific attributes.

The landscape is always evolving, emphasizing the need for a holistic approach to M&A. Check out the video below to learn more.