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  Merger and Acquisition (M&A) are an important phase in the life of every founder and their business. There are so many misconceptions about mergers and acquisitions today. However, M&A processes are challenging and also complex. According to Refinitiv, the value of global M&A deals exceeded $4.3 trillion in the first three quarters of this year.
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The figure is going to explode in the coming months. In this article, I’ll explain why and share some tips for navigating the M&A process.

What M&A Is All About

M&A offers you the opportunity to visualize your smaller start-up in a larger project. M&A offers you the opportunity to make a bigger impact on the world stage. Unfortunately, M&A is not celebrated like venture capitalist backing. However, M&A above all guarantee the longevity of your product and company in general. For example, Equinix, a US-based company, acquired MainOne, a West African data center, and connectivity solutions provider with a presence in Nigeria, Ghana, and Ivory Coast, for $320 million. One of the things you need to understand is that mergers and acquisitions can be an opportunity for competitors to collaborate and become one company.
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Therefore, a competitor may be a competitor today, but an ally tomorrow. What does this tell you? Mergers and acquisitions are all about having an open mind.

Questions to Ask During the Merger and Acquisition Process

M&A is a critical phase for every founder, hence, there is a need to ask questions, which is very critical for successful M&A.

  • What’s The Company Culture?

Culture has to do with the guiding philosophy that governs the operation of the company. The company may choose to focus heavily on sales, product development, or marketing.
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Company culture is one of the important things to consider when going through an M&A process.

  • How Will Your Company Operate?

Will the M&A still allow for separate operations within the company? Or will there be the integration of new departments and team members? These options must be considered. For example, during the famous acquisition of Diamond Bank by Access Bank, Diamond Bank controlled the marketing area, while Access controlled the core operations. 

  • What’s The Reporting Structure?

This is where you consider who becomes the senior or junior partner or who makes the final decision. The question remains if you will be okay with either being a junior or senior partner. 

  • What About Your Customers?

Finally, during the M&A process, what to do with existing customers is critical. How do you treat existing customers now that there’s a merger? This is very important during this process so that the bond between the company and its clients is not broken. Featured Image Source: M& (mergers And Acquisitions)
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This article was first published on 4th July 2022

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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