Our San Diego mergers and acquisitions attorneys increase success rates of our client’s acquisitions. Research varies from one source to another, but regardless of the source studies have shown 60 to 85 percent of mergers fail in the United States. Some of the theories behind a failed merger include poor due diligence, momentum, debt and post-merger possibilities. Why is the failure rate so high in most cases, and how can the Watkins Firm increase the odds of success in your merger or acquisition?
Failure to Conduct Proper Due Diligence is a Primary Reason Mergers Fail
The failure to conduct proper due diligence in an asset purchase or stock purchase transaction is one reason mergers fail in San Diego and Southern California. Mergers and acquisitions are not simply big words; they are sophisticated legally and financially complex deals that involve extensive preparation, long negotiations and detailed contracts covering everything from executive control to third-party interactions. Having the right professionals on your side can literally make or break the deal.
Success often comes down to the nitty-gritty details, according to most analysts. Due diligence is a part of every mergers and acquisitions transaction. In the broadest sense, the term means that there is a duty to investigate before making a deal or signing a contract. One problem with some mergers is that the “investigation” or “due diligence” is not done properly whether that means that it was not thorough enough or that there was a problem with the person conducting it.
The Watkins Firm has developed our own internal due diligence processes and checklists with a proven track record of success. We work with our clients to verify every disclosure, warranty or representation. We analyze all assets included in the transaction and associated encumbrances. We evaluate current market trends as well as the likelihood of successful transition of “goodwill” from the seller to the buyer. Our San Diego mergers and acquisitions attorneys increase success rates of our client’s acquisitions.
Integrating Cultures and Debt Are Additional Potential Red Flags
Integrating the operational business cultures of the buyer and the acquisition target and the structuring of debt will play a substantial role in a successful merger or acquisition. How can the advice and counsel of the Watkins Firm help you to evaluate these risks and develop strategies to increase the odds of a successful transition?
“We’ve Come Too Far to Back Away”
Some people are afraid to say what they really think once a deal is underway. These complex and expensive transactions require a lot of skin in the game for all parties in terms of time and money. It can be difficult for some people to keep the process from moving forward after all they’ve invested to set up the transaction.
Your Watkins Firm attorney provides clear, accurate insight and analysis. In some cases it may be better to back away from the transaction. In most cases where genuine concerns arise out of due diligence we help our clients to establish controls, additional terms and conditions and strategies to reduce risk and increase the odds of success.
Our San Diego Mergers and Acquisitions Attorneys Increase Success for Our Client’s Acquisitions
How do our San Diego mergers and acquisitions attorneys increase success for our client’s acquisitions? In addition to thorough due diligence, we give extensive thought and analysis to post-merger scenarios. What is actually going to happen after the deal and how can the protection of key employees, a transition management strategy and key customer relations impact the transaction going forward?
Your Watkins Firm attorney will not only ensure that the details are taken care of, but that they are clearly communicated to those involved. We provide sound advice and counsel based upon almost four decades of proven and successful experience. We ensure thorough due diligence and attention to the details which can make the difference between failure and a successful acquisition.
If you would like to learn more about how you can ensure the success of your San Diego or Southern California merger or acquisition we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
