The art of using Mergers & Acquisitions and Private Equity for value enhancement
In an increasingly globalised world, M&A is an essential mechanism of shareholder value enhancement. M&A is facilitating access to new markets, capacities and technologies, as well as enabling organisations to focus on core competencies. Well-planned and strategic M&As are transforming a number of emerging markets’ corporations into global powerhouses and enabling leading US and European companies to metamorphose into international majors.
Private equity, with their wide network and vast experience, play a significant role in the internationalisation of companies and is becoming increasingly popular in Asia as it provides shareholders and management with a number of interesting alternatives to enhance shareholder value. The capital facilitates growth of both emerging and mature companies. As a source of capital, it helps to restructure corporate balance sheets and turn around distressed companies.
While M&A offers immense opportunities, the challenges to successful M&A are considerable. A proper strategy and identification of right targets often make the difference between the success and failure of an M&A process. Appropriate value analysis and negotiation of satisfactory terms and conditions are critical to achieving optimal results with M&A.