Be in the know: Qualitative market and company information for successful M&A processes
Pursuing company acquisitions with the right focus
Mergers and acquisitions are pursued for reasons that include corporate growth, enlarging the product range, developing new markets or expanding a company’s leading position. Horizontal or vertical product diversification is a classical driver of companies’ M&A activities. Mergers and acquisitions often make it easier to extend your range to products in the same sector (horizontally) or to products either upstream or downstream in the manufacturing process (vertically).
Data for the M&A process
So that they can approach the M&A process systematically and bring it to a successful conclusion, M&A managers need reliable and up-to-date market information, including:
- Company information
To ensure the legitimacy of the transaction agreement, the integrity of merger and acquisition candidates must be checked. The check enables target company to make sure that they are not getting involved with economic and financial crime. Analysis of business metrics enables the likely success of the merger or acquisition to be predicted.
- Industry information
- Competition information
To create a robust basis for decision-making in the context of M&A due diligence, you need more than just one source of information. Do not rely on a single source or only on the free Internet. A professional business database provides certainty in the information procurement process and is essential for successful M&A transactions and agreement.
A heavy burden on the shoulders of M&A Managers
M&A managers are responsible for preparing for a merger or acquisition. Many failed mergers and acquirers demonstrate that this task is challenging and fraught with capital risk.
The responsibility for basing M&A transactions and investments on valid and high-quality data falls on the shoulders of M&A managers. They must analyse information thoroughly and portray it comprehensibly. Decision-makers must be able to rely totally on these analyses.
If the freely available Internet is used for research, there is a risk that information will be inaccurate or that important information – which may be hidden behind paywalls – will be missed.
Free Web vs. Deep Web
The most important criteria for successful research:
The relevance and quality of the content and sources
The biggest different between paid-for online databases and public search engines is that the former guarantee quality and not just quantity. In professional research tools the sources are selected and strategically collated by experts. The deep web also includes licensed content that may be hidden behind paywalls on the free web.
Filter options and an extensive archive
Filter options are useful for reducing research results to a small number of relevant hits. This enables you to avoid being inundated with information and leads you quickly to the information you need.
For research purposes it is particularly important to be able to consult an extensive archive of high-quality sources. A professional research tool gives you access to deal with the sources such as The New York Times, The Washington Post, The Guardian, FAZ and Wirtschaftswoche. The comprehensive archive of these publications goes back for an average of 20 years.
Relevant M&A Analyses
For an M&A transaction, the information obtained should be used to perform the following analyses:
Raw data for M & A analysis can also be integrated into your own systems via API.
Frequently Asked Questions
Answers to some popular questions
It is the buying, selling and merging of companies to achieve corporate growth, expansion of the product range/ portfolio, developing new markets or expanding a company’s leading position. Read more
Mergers and acquisitions make it easier to extend your own offering to products from the same industry or to products at an upstream or downstream level in the manufacturing process. Read more
- There are several advantages to Merger or an Acquisition:
- Quick growth, bigger market share
- Larger companies, more efficiency
- Efficient processes allow lowering of prices
- Diversification of portfolio
- Acquisition of a bigger pool of skill and talent
- Avoid duplication of resources
- Tax advantages
- New market opportunities (for both companies)
Hence, in order to achieve the best results from a merger or an acquisition, a thorough due diligence is a essential to evaluate the company being considered for M&A, with respect to its stakeholders, investors, vendors; for their finances, product development, markets and more Read more
There are sometimes a few disadvantages following a merger or an acquisition:
- Sometimes companies M&A is done to gain Monopoly
- Monopoly may lead to higher prices, inefficient distribution of power within the industry
- Operational issues, companies with different natures, processes and cultures may struggle to merge
- Fewer choices for customers, may also lead to fewer improvements or innovations, loss of productivity
- M&A often leads to job losses.
- Hence, an efficient due diligence is a must to evaluate the company being considered for merger or acquisition, with respect to its key players, stakeholders, investors and vendors; their finances, product development and more...Read more