In order for an M&A process to be successful, there must be effective governance in place. Governance is used to manage risks, and ensure that key stakeholders are well-informed and able to provide appropriate oversight throughout a transaction. In this article, Guy Fisher, Head of Corporate Development at Suncorp Group, shares his expertise in setting up M&A governance for efficiency.
"Speed and efficiency create better outcomes. It reduces confusion and the time for external factors to impact the value of the deal and increases certainty." – Guy Fisher
To establish efficient M&A governance, assess the situation, consider any constraints such as confidentiality and regulatory obligations, and review prior transactions to identify areas of agitation and friction to minimize business disruption. By having the right individuals in place and well-aligned, the ideal process can be mapped out.
Risks are tied to every deal, no matter the materiality or size. Every governing body must be informed and aligned to keep decision-making efficient. Make sure that the transaction documents are easily digestible for everyone to comprehend and make decisions quickly.
Guy finds it surprising that although it's crucial, people seem to show little regard for internal and external relationships. Building strong connections is key to M&A; successful transactions are only possible with empathy and trust among key stakeholders. When M&A gets intense and stressful, people will question how it will affect them and their careers. Make sure to let them know you are thinking of them and show them how valuable they are to the process.