“According to the findings of the 2015 M&A Trends Report, an overwhelming majority of the 2,500 surveyed executives at US corporations and private equity firms expect the robust pace of mergers and acquisitions to extend–or even accelerate–in 2015. This momentum is expected across the board, in private and public businesses, in multiple industry sectors, in companies and private equity firms large, small, and in between.”
It seems like every week we’re hearing about a new merger and acquisition between two entities or one corporation acquiring another.
As a Canadian I’d never thought I’d see the day when Tim Horton’s would merge with another fast food entity, especially Burger King.
King Horton’s or Burger Tim’s? What do I call them?
Or that Tata Corporation in India would acquire the venerable British car manufacturer Jaguar. How do I react to a Tata S-Type rolling off the assembly line?
And we don’t even hear about the thousands of other mergers and acquisitions that take place every year.
We also don’t hear about the tremendous amount of planning, due diligence and negotiations that must take place for a successful merger and acquisition, or the disastrous aftermath when they don’t.
As a contracts negotiator, I’m sometimes asked to assist clients in the due diligence phase or during negotiations. However, most of the time I’m brought in once the deal has been finalized and the parties are in post-acquisition, which I like to call the “Panic” phase.
Because the morning after the ink’s dried and the two parties begin rolling up their sleeves for the real work, a third party shows up. The supplier.
And they’re usually waving around a contract with one of the party’s that says it can’t be assigned to the other party without the supplier’s consent. So they’ve shown up to give their consent…in exchange for a small fortune.