Mergers And Acqusitions Tax

The standard for successful integration is higher. After previous M&A integration surveys showed improvement in achieving strategic, operational and financial success, the latest survey features much lower marks, indicating a pause in progress.

One potential reason is a plateau in companies’ approach to integration, with many acquirers ready for new techniques and tools to manage new challenges. Another reason could be higher expectations, as senior management and boards of directors have become increasingly involved in M&A.

In a volatile economy, the 2020 M&A Integration Survey shows companies haven’t necessarily mastered the key elements of a successful integration. Along with the survey findings, this report includes insights in four critical areas – integration strategy, value capture, people and change, and the transition program – that can help acquirers navigate a turbulent landscape and experience a smoother integration journey.

Financial success remains a challenge

A company’s M&A integration strategy evolves with the deal strategy and overall corporate growth strategy, and integration is measured by strategic, operational and financial success. The survey shows a major shift in integration success, likely due to a few factors. Higher company valuations have elevated transaction prices, affecting financial success. Deals for emerging technology can bring innovation but require integrating different business models and cultures, making operational success harder to achieve.

There also has been a continued decline in high-performing deals, those in which executives reported significant strategic, operational and financial success. For the first time in the survey’s history, there were no high-performing deals.

Value capture: When everything is a priority, nothing is a priority

Synergy capture continues to be difficult

Even though 70% of companies had synergy plans in place at deal signing, survey results consistently show that capturing value in M&A can be elusive. Companies that involve integration teams early in the deal process are 40% more likely to see favorable results. This year’s survey also surprisingly shows more favorable results in capturing revenue synergies versus cost synergies.

The value realized in an acquisition depends in large part on how well the newly combined company captures synergies, and buyers can increase their odds of success with a well-defined, disciplined and transparent approach. Similar to the target operating model, the initial synergy model developed before deal signing needs to evolve with more access to people and information at the target company.

Mergers and Acquisitions

Turkish market’s high reputation and steady growth over years drive an increase in M&A activities in Turkey. There were approximately 300 deals which total amount bigger than 10 Billion $ in 2017. This number exceeds 8 Billion $ in the first half of 2018. Our highly experienced team ensure you are minimizing your risk and maximixing value in your deals in a country which has slightly complex regulations in terms of M&A.

We provide following services:

• Consulting regarding your planned M&A,
• Pre-acquisiton financial due diligence services,
• Deal structuring services,
• Consulting and leading share transfer procedures.