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Senior financial executives are typically in the forefront of merger and acquisition (M&A) transactions at their companies. The financial team, at a minimum, will need to finance the transaction and account for it post-transaction.
More often the financial leadership has a very active role in:
- assessing the strategic fit of the M&A opportunity
- investigating the financial, tax, and commercial affairs of the target company
- planning for the integration of financial departments and information-reporting systems
- developing a scorecard to track the results of the transaction
- most important, providing an objective view of the deal to the CEO and the Board
Because many times the other deal participants such as the corporate development team and business unit leadership become enamored with the upside potential of a transaction, the risk assessment and mitigation is often the responsibility of the financial team. If a transaction performs poorly, the CFO and controller are left with periods of strain on treasury and negative financial results to explain to the Board and the Street.
Crowe Horwath in coordination with Financial Executives Research Foundation (FERF) is conducting an “M&A Risk Mitigation” survey. This survey is designed to gauge the perspectives of financial executives on potential risks related to M&A deals and how these risks can be mitigated. The final results will be compiled into a report that will help inform senior-level financial executives about how to best plan for and execute a merger or acquisition. It will also provide insight into the most critical risks and the solutions suggested by your peers.
Please take ten minutes and complete the survey now.