Companies can boost the chance of successful business mergers and acquisitions withcorrect planning and with working in a pre-defined systematic methodology. They must treat it as a project and pay attention to specific details to make it seamless and successful.
Kavan Choksi UAE- Steps to make business acquisitions and mergers successful
Kavan Choksi UAE is a skilled and experienced entrepreneur with expertise in financial matters and business. He also has an interest in travel and photography. When it comes to business mergers and acquisitions, the process is complicated. Financial advisors and business experts in all fields should be consulted to make projects successful.
Certain factors often lead to a failure of the projects, and there are –
- Legal problems
- Issues in negotiations
- Failure with risk management
- Failure with human resources
- Implementation problems
- Financial failure
- The planned objectives in the strategy failed.
Businesses must ensure planning is done well before the process takes place. The synergies of the companies have to match before the actual process starts.
Steps to success
According to him, business mergers are acquisitions that can be made successful with the following steps-
- Strategy-Business mergers and acquisitions are a part of the broader organizational strategy and should be extensively planned.
- Due diligence-Risks pertaining to legalities, business-related, financial management, and operational are analyzed in an extensive due diligence process that should be carefully planned and later executed.
- Planned Synergies-These planned synergies must be spelled out clearly, and attention should be attributed to their achievement.
- Expenses- Costs can easily skyrocket during the business merger and acquisition process phase. These expenses need to be budgeted for and later monitored.
- Expectations- False expectations by multiple groups can often result in disillusionment. All these expectations must be discussed and later clarified with all the relevant parties involved in the M&A process.
- Communication and transparency-Proper communication and relevant openness with the company employees, business customers, company suppliers, and other related business partners is advised. Rumors are dangerous and, if they are not nipped in the bud, can cause damage to employee morale and all the role-players involved.
- IT Systems- The merging of IT and other important systems should be meticulously planned and executed in this phase with the utmost care, or else, it will adversely affect the newly merged business entity.
- Commitment and interest- The involvement of the top management is important for enhancing the success of the project.
- Supervision- The process is a means to an end, so critical business areas should not be overlooked.
- Change management- Here, two different business cultures were merged, so some people might be resistant to this new change. They might experience some form of trauma in the whole process.
According to Kavan Choksi UAE, professional change management will make a difference between a successful merger and acquisition or the complete failure thereof. Generally, companies view mergers and acquisitions as a major means to boost their competitive edge in the market. The process also enhances the financial well-being of the companies involved.