Merge with Caution Blog

The Best Way to Gauge M&A Deal Execution Trends - Look to the Transaction Risk Insurance Market.

How AI-driven tools can enhance teamwork, streamline insights, and drive post-acquisition success.

One of the most frequent questions we hear from deal teams is:

If and how we can help them use AI, technology, and data to more effectively assess opportunities before they incur material due diligence (DD) costs?

Our team loves a good work-related podcast, so we thought we would share a list of the top ten M&A and PE-related podcasts currently on our playlists:

Ten ways to win at DD and Risk Management on M&A Deals in 2024:

Closing dinners are a celebratory tradition within the M&A world, a chance for deal teams and advisors to mark the successful completion of a transaction. But for deal team members on the buy-side, the real test begins after the celebratory meal.

While due diligence (DD) is a crucial step in any M&A transaction, its cost can be significant. However, there are strategies to leverage valuable resources at no upfront cost.

The most common things M&A investors worry about having to manage on the buy side are:

So, it turns out I am on something of a mission…

The menu of third party due diligence workstreams for M&A deals today has grown significantly over the past 10 years.

A recent discussion with VPs and directors from several private equity (PE) firms shed light on the often-overlooked challenges associated with managing M&A due diligence processes.

The world of M&A is full of complexities, but the due diligence (DD) process shouldn't be one of them. A recent discussion on LinkedIn revealed widespread frustration with current practices, highlighting ten key pain points.

As a senior deal lead at a private equity fund manager, a key part of the role is to constantly address headwinds that could derail a transaction.

These challenges could be as follows:

Due diligence (DD) is an essential step in any M&A transaction, but its significant cost begs the question: are companies receiving an adequate return on their investment (ROI)? Discussions with middle-market fund managers and large corporations reveal a consistent theme: concerns about the value derived from DD expenses.

Fund managers are raising concerns about escalating deal costs within the M&A landscape. These concerns persist even in familiar sectors and strategies where deal teams have collaborated with the same advisors on previous transactions.

Effectively aligning multiple decision-makers with the right data to inform critical M&A choices remains a challenge for private equity (PE) teams. As one PE partner aptly described it, "it can sometimes feel like trying to herd cats."

Due diligence remains a critical stage in the M&A process for middle-market fund managers. However, several recurring challenges hinder efficiency and slow down deal execution.

Due diligence data is the lifeblood of M&A transactions, with investors making significant investments to acquire this crucial information from external advisors. However, extracting actionable insights from this data can be a significant challenge for deal teams.

The diligence process can be prohibitively expensive for fund managers and often lacks a structured approach.

Managing diligence costs across multiple advisors in an M&A transaction is a time-consuming task. Here's a closer look at the current challenges:

Due diligence is a cornerstone of successful M&A transactions. However, effectively navigating the process and responding to critical questions can be a challenge, particularly during internal meetings.

In Private Equity, Investment Committees can determine the life-or-death of every deal. How do deal teams best support them in doing so?

The frenetic pace of live deals is legendary, and due diligence (DD) often lies at the heart of the chaos. But beyond the busy badge of honor, what specific aspects of DD are causing the most headaches for deal teams?

In the dynamic world of private equity investing, it can feel like a constant race against time.

Who doesn’t love a huge M&A due diligence report?

We recently heard the phrase "innovation theatre", and according to ChatGPT it can be defined as:

Escrow arrangements have long been a staple in M&A transactions, used to mitigate risks identified during due diligence. However, the rise of insurance solutions raises questions about escrow's continued relevance.

The essence of successful PE fund managers' moats lies in their distinctive strategies and strengths

Having had the chance to have conversations with, and deep-dive into various investor presentations and marketing documents from, PE fund managers around the world, I've distilled the common thread of what some of the most successful firms point at when describing their own moat:

Is private equity a collaborative team sport, reminiscent of a well-coordinated ballet, or is it more akin to an individual endeavor where success depends on star performers hitting home runs?

Is Private Equity a Team Sport or an Individual Pursuit?

The Journey Beyond the Closing Dinner In private equity, successful acquisitions are often celebrated with closing dinners, deal tombstones, and the satisfaction of securing strategic assets.

The Journey Beyond the Closing Dinner

Is hindsight two and twenty? I struggle to remember what I did yesterday, let alone months or even years ago.

Private equity fund managers pour vast sums into diligence – ranging from hundreds of thousands to several million dollars.

What happens to all the valuable insights gained during diligence once a deal is closed?

What happens when a private equity deal takes an unexpected turn or, in some cases, goes belly-up? There is no shortage of case studies on the financial implications for fund managers and the impact of a few bad apples on fund returns.

What happens when a private equity deal takes an unexpected turn or, in some cases, goes belly-up?

What does good look like for critical M&A due diligence findings? Top Concerns for M&A Investors on the Buy Side

I have had hundreds of conversations with leading PE fund managers – on both sides of the Atlantic – to understand how they handle DD findings on their M&A deals.