Chairman's Message - August 2020
By Mark Herndon, Chairman & CEO of the M&A Leadership Council
According to an August 26, 2020 report in Mergermarket, (an M&A Leadership Council partner organization), the U.S. Technology, Media and Telecom (TMT) sector has been the best performing sector during the Covid-19 pandemic. With 745 deals valued at USD $181bn as of August 25th, TMT activity has risen consecutively month-over-month since April with more deals expected in the pipeline.
Other media and service provider reports concur, with a noticeable resumption in previously paused deals across most industry sectors. Deal volume and value are still substantially below norms, but it’s time to ask the question – “Is your organization still moving forward to MA&D readiness?”
Our view from practical experience is that readiness requires far more than a playbook and some tools. M&A is ultimately an organizational capability and a business process for growth that must be carefully built to include these key components:
- M&A Lifecycle Framework. Start with the roadmap from end-to-end, describing the phases, steps, decisions, and deliverables best describing what happens and when for your typical deal types.
- Leadership, Governance, Resources, and Budget. Identify in advance the leadership roles, escalation/decision processes, resourcing, and costs required to execute quickly and effectively. Without good M&A governance, even the best deals will struggle.
- Enterprise-wide M&A Program Management and Cross-Functional Alignment. M&A is a top-down, strategy-led effort that requires superb enterprise and cross-functional planning, coordination, communication, and change management through a disciplined process.
- Functional M&A Capability and Readiness. Each function needs to be equipped in advance with their respective roles, resources, tools, and process.
- M&A Software Solutions. While software is not a strict requirement, it can help standardize, automate, and accelerate the process – but caution is in order. Like any software implementation, build the process first and implement with a great deal of planning and user support to avoid disaster.
- M&A Education and Training. IT is said that M&A success is an experience-driven skill set. Not merely academic understanding, but practical insight, with tried and true “what’s works” in the heat-of-battle wisdom.
That’s what we work hard to deliver for each M&A Leadership Council webinar and training program, whether online or in-person – great insights from outstanding M&A practitioners in multiple disciplines.
We look forward to seeing you at an online event soon.
Very best regards,
Chairman, M&A Leadership Council