Mergers & Acquisitions (M&A)
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, the integrity of merger and acquisition candidates must be checked. The check enables companies to make sure that they are not getting involved with economic crime. Analysis of business metrics enables the likely success of the merger or acquisition to be predicted.
- Industry information
- Competition information
Industry metrics and market information also help assess the likelihood of success. On the basis of reliable data, companies can identify whether a suitable market for the planned M&A transaction exists and whether trends can be driven forward by the takeover.
It is important to identify industry trends and competitive challenges promptly. A good understanding of the competitive situation is crucial when estimating your own sales potential.
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.
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 acquisitions demonstrate that this task is challenging and fraught with risk.
The responsibility for basing M&A transactions 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 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:
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