M&a Market Puts It To Task

摘要

Mergers and acquisitions traditionally involve intricate planning over several months or even years, but the current economic climate has meant that this tradition has been dispensed with by many in recent weeks. The M&A market is now very different. Companies are having to be swiftly rescued from collapse to preserve businesses and safeguard jobs. There are numerous examples, but the one that probably springs to most people's mind is HBOS and Lloyds TSB. Financial services is not the only sector to have been impacted. Retailers are also suffering; Woolworths was the first major victim of being unable to find a buyer in time. In a fluctuating climate, well-established due diligence processes are being sidelined and the result is that internal process such as IT are left in a state of chaos as they scramble to integrate disparate systems in a matter of weeks, where it would normally take months. This begs the question: are these companies setting themselves up for a fall? Although speed is crucial, it is essential that businesses drive efficiencies from their M&A activity. Consumers are not concerned if you have only just merged, they expect a business as usual approach - if you cannot give them what they want, then they will go elsewhere.