Concept and Perspective - CNP

One of the aspects of M&A that is often neglected is what's referred to as post-acquisition integration (or just 'integration'.) This is the process of stabilizing an acquired business and then combing it with the buyer's existing business. This process is critical to the success of M&A, not least because the employees and customers of an acquired business might leave (or worse, get disgruntled and stay!). I've worked on many integrations over the years and recently decided to seek an integration manager certification, through Intista. I successfully completed the course of study and received my accreditation last week! 😀🎉🥂🍾

In recent years a 'valuation gap' has opened up between buyers and sellers in M&A. What can you do if faced with this challenge? One way is to use alternative deal structures to bridge misaligned expectations. These structures make greater use of seller finance (with performance conditions), earnouts and rollover equity.

Bain & Company's recent M&A Market report (https://www.bain.com/insights/topics/m-and-a-report/) highlights the growing gap between the public corporation valuations and M&A EBITDA-to-EV multiples.

If you need help finding a creative way to structure your deal, reach out today. We know M&A!

Absolutely adore this gem from Warren Buffett: 'Price is what you pay. Value is what you get.' It's a powerful reminder that price and value are not the same. The true worth of an investment (e.g. an acquisition) can vary wildly from one person to another. Factors like synergies, cost of capital, and even sentimentality or situational circumstances add layers of subjective value. Be wary of those who try to convince you of the absolute, objective value of something or what they consider to be 'market.' True value often lies beyond the numbers.