On 21 March, we invited clients and Nordic colleagues to discuss best practices in large-scale cross-border M&A.
Partners Carola Lindholm and Samuli Tarkiainen hosted a series of panel discussions summarising some of the key success factors to be kept in mind especially in a competitive sale processes.
Key success factors in large-scale M&A projects
- Know what you are selling, and where the target's assets, technology, employees, and contracts – and thereby the value – are.
- A high quality vendor due diligence will give you time to correct or mitigate findings, to further increase the value of the target, and to avoid surprises after go-live.
- Ensure that the management is on board and incentivised. Also check that their contracts are up to date and give you the necessary protection of confidentiality, IPRs and non-competition
- Plan for deal security from the very start – be mindful of the scrutiny some buyers may face to get the necessary authority approvals
Project management masterclass
- Plan, plan, plan – in detail and with a clear scope: objectives, milestones, and deliverables.
- Set and manage realistic time schedules – some flexibility is always needed.
- Align the budget and resources with your scope and timeline.
- Communication is key – it allows you to monitor and react.
A changing FDI landscape
- Be mindful of increasing filing obligations and scrutiny, especially in this demanding geopolitical climate and e.g. within the defence and security sectors.
- Monitor timing implications and ensure that you are ready to file as soon as possible, in some countries already based on a LoI or a draft SPA.
- Remember that intra-group arrangements (e.g. in connection with internal carve-outs) may need to be filed.
- Keep an eye on the EU Commission's recommendation to monitor also outbound investments in certain technology sectors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
