It is essential to close an agreement successfully from the beginning, including strategies that were developed during the due diligence and negotiation phases. It requires navigating legal complications, optimizing efficiencies and ensuring post-closing integration efforts create value and achieve synergies. Effectively managing these activities will result in an improved market position, improved shareholder value and quicker strategy objectives. A mistake in this area could be costly.
The key to a successful transaction is to clearly communicate, socialize and define the end game at all levels of the company. It is essential to ensure that actions of teams are restricted to those that are profitable and aligned with the rationale behind the deal. It’s equally important to have the proper tools in place to effectively manage the process – a combination between technologies and processes that allow for visibility, structured information capture and some level of automation.
A well-defined strategy for execution is crucial to success. It should include defining clear deadlines, assigning responsibilities and establishing timelines. It is also essential to recognize and address any regulatory concerns right from the beginning. This helps stakeholders avoid legal complications and ensures that the appropriate resources are readily available in the event of a need. It is crucial to be flexible throughout the entire process. This means revising and changing goals depending on new developments or insights. This is vital to maximize value and prevent value leakage. In the end, buyers should be determined to pursue what does a good rfp look like strategic value that is more than traditional synergies.
