M&A Governance - To Capture Value through M&A -
At the 17th Annual Conference held by ACGA, Vincent Poizat of Deloitte Touche Tohmatsu pointed out that corporate governance in the context of M&A –“M&A governance” is a critical issue companies face regarding M&A.
Participation Report on “Asian Business Dialogue on Corporate Governance 2017” held by Asian Corporate Governance Association (ACGA)
Summary of Speech by Vincent Poizat
- M&A’s success rate remains low globally, despite improvements in various M&A tools over the last twenty years.
- The key to M&A success, as seen among mature serial acquirers, is corporate governance processes in the context of M&A, especially with regards to risk management, deal review and approval processes– “M&A governance”; however this is largely lacking at most companies.
- As the word “governance” suggests, M&A governance is based on a risk management approach to M&A led by the board, which encompasses not just target-related risks but also strategic and execution risks.
- Following a customised review of the firm and its M&A environment, such as review of the M&A strategy, M&A targets universe, potential competitive bidders, regulations, integration policies and deal execution practices, one can not only enhance internal M&A processes but also design a robust, risk-based template for boards and appropriate committees to assess deals as well as a practical set of approval processes, applicable to all transactions.
- This approach leads to systematic and efficient deal reviews and approval processes; it also provides a good platform to improve board and committee members’ effectiveness when it comes to approving M&A deals.
- Investors will increasingly demand that their invested companies oversee transactions in a systematic and robust manner. Companies should take their calls seriously.
See Participation Report on “Asian Business Dialogue on Corporate Governance 2017” for more information
ACGA 17th Annual Conference
Asian Business Dialogue on Corporate Governance 2017
Date: November 14th (Tue) -15th (Wed), 2017
Place: Trident Hotel Bandra Kurla (Mumbai, India)Theme: Nurturing Corporate Governance Ecosystems in Asia
Organiser: Asian Corporate Governance Association (ACGA)
Click HERE for more details.(External Link)
Center for Corporate Governance
The Deloitte Tohmatsu Group provides information on corporate governance around the world to companies through its portal site at the Center for Corporate Governance. Deloitte member firms from all over the world, including Japan, work closely together to support global corporate governance activities of global companies.
Deloitte Touche Tohmatsu assists clients to ensure effective oversight of M&A transactions along efficient review and approval processes. We use a risk management approach based on M&A best practices and a set of strategic tools; this ensures process integrity (from origination to post-deal integration) and enables more efficient and objective decision-making in M&A.
Vincent Poizat / Masahiko Kitazume / Kenichi Komatsu
Deloitte Touche Tohmatsu LLC