M&A: principal risks

M&A: principal risks

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The mergers and managerial acquisitions take prepared an element of supreme importance, this is, the risks that can be given in the integration. In Evolutiza Lawyers and Tax Advisers we rely on experts that they will be able to advise you to minimize these risks

In order that the project of integration that is claimed is satisfactory, it is necessary that there is carried out a planning, inside which the principal risks place to bearing in mind:

-        Lack of organization between organizations: to be able to realize a successful integration is necessary bear all the aspects in mind of both in an igalitarian way, both in cultural aspects and in personnels or politicians. For it, one will use a few guidelines, which are:

  • Follow-up of the policies, strategies and internal procedures established to align the new organization.
  • Follow-up of the policies, strategies and internal procedures established to align the new organization.
  • Orientation and formation of the personnel towards common aims.
  • Consolidation of a culture of service to the client.
  • To define the type of distribution of the work and the relations of dependence between functions and responsibilities.

All the factors that have been mentioned previously are interdependent and on them it depends that the organization has like a successful integration proved.

-        Not integration of the “timing” or speed: The speed of the integration has relevancy great at the moment of realizing an acquisition, since this one is alone one more phase of the company, but the latter has to continue realizing his routine activities.

-        Not location of the persons in charge of the income and his variables: As last aspect that has to be born in mind to realize a successful acquisition, we emphasize the identification of the persons in charge of the income and the variables with those who can turn affected. The persons in charge of income in the organization can be between others, certain contracts with suppliers or processes of innovation, between others.

At the moment of defining and to identify perfectly the possible risks, not only we have to possess the elements that we have mentioned, also we must identify the possible impacts of losses, preparing a detailed action plan that it bears in mind the clients in risk and that gives the sufficient attention to the due formalities (due diligence).

If you are thinking of doing a merger or managerial acquisition, do not hesitate to contact our attorneys as specialists in the managerial sector.

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