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It is important to protect your business when conducting negotiations for mergers and acquisitions, particularly as the M&A boom increases after the pandemic. These transactions are high-risk ventures which can result in billions of dollars and harm corporate reputations. Security professionals must be able to see the acquired companies to find any security flaws and reduce risk prior to the deal closes. Utilizing threat intelligence can help identify the most vulnerable points in the two systems and offer suggestions for improvement prior to the integration process.
While some M&A deals are driven by financial factors however, the most successful deals require a more comprehensive approach to business and brand value. A key part of this is the ability to know how a company’s brand image is perceived by its customers and target markets as well as the reputation of its executives. A strong M&A due diligence process is essential to finding this information and ensuring that the M&A is successful.
A variety of deal-protection devices have been incorporated into M&A agreements. These include termination fees, matching rights, and asset lockups. Since the courts have become more willing to accept these devices. The extent to which they improve the return for the shareholders targeted by the deal is contingent upon the motivations and behaviour of the target managers and directors who are acquiescing to them in addition to the way they are implemented. This article argues that if the terms of an M&A deal including termination fees as well as match rights – are carefully designed to align the motivations of the target directors and managers with those of their shareholders, they can significantly increase the chances that a transaction will be appraised at fair value.
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