The success of mergers and acquisitions (M&A) strongly depends on having in-depth knowledge of the target firm which is not always possible via business reports or news references.
One of the best ways to obtain industry-specific information, including valuable insights, is to get in touch with an Expert Network which can play a crucial role in M&A since it links businesses with subject-matter experts who can offer strategic advice and direction during the M&A process.
The Harvard Business Review reported in 2020 that 70 to 90% of M&A agreements fail, typically as a result of “integration issues” such as establishing a single culture, sharing similar viewpoints, and collaborating effectively.
However, Expert Networks can shed light on the cultural dynamics of both the target and the acquiring companies as well as offer insight into the best ways to develop an organizational structure that is both effective and efficient and aligns with the deal’s strategic goals.
Read on to find out more about the importance of Expert Networks in M&A.
What are Expert Networks and what’s their role in mergers and acquisitions?
Expert Networks are online or digital platforms that allow individuals and companies to connect with industry specialists and this approach is considered to be one of the best ways to gain the deep market insight that is essential for future development.
With regard to M&A, Expert Networks can help to connect clients with subject matter experts who are able to offer insight into the market environment, the regulatory climate, and other issues that may affect the success of a potential M&A transaction.
They can also help to identify any possible risks or opportunities linked to the transaction. Furthermore, by offering information on businesses that the general market may have overlooked or undervalued, the specialists vetted by Expert Networks can assist clients to identify prospective acquisition targets.
How can Expert Networks facilitate the success of mergers and acquisitions?
Expert Networks are a significant resource for organizations and investors involved in M&A activities because they provide access to specialized and hard-to-get information and skills that can help to guide strategic decision-making and increase the likelihood of success.
What exactly does this mean?
1. Access to niche expertise
One of the primary benefits of working with Expert Networks in M&A is that they offer access to specific expertise that is frequently unavailable through conventional research routes. Experts vetted by Expert Networks offer viewpoints from the actual world that extend beyond theory and textbook knowledge.
Subject matter experts can therefore explain every aspect of a specific industry, including the complexity and nuances that need to be absorbed in order to succeed. These people are knowledgeable about the shifting dynamics of the market, the competitive environment, and new prospects.
2. A low-cost solution
Expert Networks can be a low-cost way to gain access to specific information. Rather than hiring a full-time staff member with a certain skill, businesses can hire an expert on an as-needed basis, saving money while gaining useful insights and avoiding the high cost of acquiring business intelligence and historical data or records about a particular company.
3. Due diligence assistance
Expert Networks can assist with due diligence by connecting companies and individuals to important stakeholders who can offer insight that may not be readily available via typical research approaches.
4. Confidentiality
In M&A deals, Expert Networks add an extra degree of confidentiality. Organizations can avoid revealing their plans to competitors or other possible buyers by working with an expert who is not affiliated with the target company.
5. Compliance
In M&A, compliance is essential since it guarantees that the deal complies with all relevant laws, including anti-trust regulations, labor laws, and intellectual property, among others, and enables successful post-merger integration. Failure to comply may result in fines, legal action, and reputational damage.
The post-merger integration process also depends on compliance. This is because by ensuring that there are compatible compliance frameworks and that employees are informed of any new obligations, companies can reduce disruptions and achieve the desired synergies thus enhancing the value of the M&A deal.
6. Risk reduction.
Partnering with Expert Networks can assist in the reduction of the risks connected with M&A deals. Experts can identify potential risks and help businesses to develop plans to handle these to increase their chances of deal success.
Do you need to find reliable experts? RightAngle Global hires professionals for each project. We ensure that each expert is relevant and competent. We will connect you with experts who are able to offer deep-level, first-hand insight that can lead to a more comprehensive understanding of the market environment thus allowing better-informed decisions to be made.
Final word
Expert Networks can be crucial in M&A transactions by giving clients access to industry specialists and information that will enable them to make more knowledgeable choices regarding potential mergers and acquisitions.
In terms of culture, leadership philosophies, internal motivation and challenges, and other important yet intangible factors that affect M&A success, there is no substitute for insider information.
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