September 12, 2014
Edward Hackert, Assurance Services Partner, Featured in SmartCEO Article, "Risk and Reward: How to Ensure Your M&A Transaction is Profitable."
No one goes into a merger or acquisition planning for it to fail, but there's no guarantee that any M7A transaction will succeed. Undertaking a successful merger or acquisition doesn't necessarily mean that it raises the company's production or increases its revenue. Sometimes the success of a merger comes from the ease of the transition, the combination of two cultures and even unforeseen benefits that many CEOs may not have thought of. Setting up for success relies heavily on the knowledge acquired and preparation done beforehand.
Preparing for Problems
Ideally, the M&A transaction will go smoothly and the business will take off afterward. But that's not always the case, and the first few months are usually a fairly good indicator of how you will fare. Edward Hackert, partner of assurance services at Marcum, knows how critical the initial time after the M&A can be. "The one-year period immediately following a merger is the timeframe in which the indicators of longer-term success or failure will typically emerge," Hackert says. "This is when the 'deal theory' is put to the test and it becomes clear whether the value drivers contemplated in the merger plan are realistically attainable."