The year 2023 had lower-than-normal M&A activity. This was mainly due to the high interest rates yet still high company valuations, which jointly led to poor M&A business cases in the short term. Still, Midagon’s consultants have been busy implementing many post-merger integrations, divestments, and demergers.
The year 2023 had lower-than-normal M&A activity. This was mainly due to the high interest rates yet still high company valuations, which jointly led to poor M&A business cases in the short term.
Still, Midagon’s consultants have been busy implementing many post-merger integrations, divestments, and demergers. Many of these projects are still ongoing. We expect the M&A activity to grow in 2024 as the interest rates decrease. We Midagonians thank our clients for their trust and respect, and we are grateful that Midagon is a leading M&A implementation management partner for our clients in Finland.
M&A projects are not only opportunities to create value but also challenges to overcome. PMI and divestment are two of the most important and difficult phases of M&A, and they require a high level of expertise, experience, and execution.
Post-merger integration (PMI) is the process of combining the operations, systems, cultures, and people of the merging entities, typically within a narrow time window, due to promises to capital markets. Divestment is separating and selling unwanted or non-core assets, often involving duplication and separation of infrastructure and systems. Both PMI and divestment require careful planning, execution, and monitoring to ensure the success of the M&A deal and the realisation of the expected synergies or benefits.
The IT integration track is typically the biggest cost pool in M&A projects; therefore, it deserves extra attention and focus. Due to the forced short-term nature of the integration projects, making sophisticated choices regarding integration depth and architecture is crucial. Quick decision-making is needed. These projects tend to balance continuously between the depth of planning and control and the actual implementation step. Excessive planning will destroy the timetable, and too light planning raises the risk of failure. Above all, it is important to keep the tracks synchronised in planning and implementation to avoid mismatches and conflicts.
At Midagon M&A Consulting, we have a team of seasoned M&A professionals who can help you plan, execute, and monitor your PMI or divestment projects. We understand the market, culture, and regulations and have a proven track record of delivering successful M&A outcomes for our clients. Whether you want to merge, acquire, or divest a business, we can provide the best advice and support to achieve your M&A objectives. Reach out to us today to find out how we can help you make your M&A projects successful.
Learn more: Mergers & Acquisitions
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