Business Acquisitions and Mergers: Frequently Asked Questions

Why should I consider business mergers and acquisitions?

Mergers and acquisitions (M&A) are considered for many strategies: Business development, partnership, and access to fresh talent and ideas.

Companies leverage M&A transactions to discover new ways of doing business and to create long-term value. Business acquisition and mergers can help the company grow market shares or provide access to new product distribution channels while boosting revenues through customer-focused initiatives.

Can SublimeSpain help me across the entire transaction process?

Have faith; there’s nothing we can’t handle, and our trained experts are committed to ensuring that you have the right tailored solution, from due diligence to post-closing activities for your global needs.

When is the right time to do an M&A transaction?

The answer is typically when a need arises. Suppose there is a change in business fundamentals, regulation, globalization, or other competitive forces such as the board of directors and executive management discovering new opportunities. In that case, M&A may become a necessity.

Are there risk areas in an M&A transaction?

Yes. Many studies and experience indicate a high percentage of M&A transaction failure when the parties involved fail to realize their expected growth target, synergies, and internal return rates.  However, it’s essential to have a clear goal to meet desired expectations, as the purpose of the acquisition, both at the early stage and throughout the integration planning and execution processes.

What are the critical phases of the M&A process?

There are several critical M&A phases:

Growth/portfolio strategy, Due diligence, Integration planning, Integration execution, project management, change management.

What common mistakes can I make during a transaction?

Its total confidentiality and not consulting a professional.

At SublimeSpain, we help you plan and implement to achieve the most significant outcomes of M&E Transactions.

What are the requirements to complete a transaction?

A variety of expertise is needed to complete a transaction successfully. That includes legal expertise in accounting, human resources, tax, operations, supply chain, risk/compliance management, process redesign, due diligence, brand management, integration planning, and execution.

Are there any regulatory and tax considerations of an M&A transaction?

There are many considerations in an M&A transaction from a tax standpoint, requiring timely legal and tax advice. Before the early discovery process, legal advice should be obtained on the applicable laws and regulations governing M&A activities.