FREQUENTLY ASKED QUESTIONS
While M&A is often perceived as the domain of C-level executives, it does not need to be mysterious. Similar issues and challenges arise whenever M&A projects are being considered.
Q:
- Is M&A the right strategy for my business?
- M&A can be a powerful strategic tool for active portfolio management.
- Businesses that no longer align with core strategy or underperform are likely to create value under different ownership.
- Strategic M&A can open new markets, add capabilities, or accelerate growth more quickly than organic expansion.
Q:
- How should price optimisation be approached?
- Focusing solely on maximizing price can lead to unfavourable contracts with excessive warranties and representations given by the seller.
- Optimisation lies in finding the balance between
o Fair pricing
o Equitable contract terms
o Reasonable transaction costs
Specialist Advice / Mergers & Acquisitions / Corporate Finance
At Klemm & Co, we believe that exceptional situations demand personalized attention. With over three decades of experience, we specialize in navigating complex, challenging, and unique corporate scenarios.
Our expertise lies in:
International mergers and acquisitions & strategic corporate finance advice
Q:
- Does successful M&A require a large advisory firm?
- While prestigious firms may reassure boards of directors, deal success depends more on expertise, dedication, and experience.
- Large firms often involve extensive teams across multiple offices, which increases costs and complexity without necessarily improving outcomes.
Q:
- What are the typical challenges in M&A transactions?
- While each M&A transaction is unique, certain fundamental challenges consistently arise.
- The most significant risks include:
o Pursuing deals without a compelling strategic rationale
o Insufficient project management and process control
o Managing complex interpersonal dynamics between key stakeholders
Q:
- How are confidentiality and compliance managed?
- Successful M&A requires rigorous confidentiality protocols and disciplined project management throughout the entire process.
- Professional integrity and strict compliance procedures are essential, including:
o Carefully controlled information flow
o Secure data management
o Proper documentation
o Regulatory compliance
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