IPO Newsletter Issue 2/2023

Many companies when go IPO choose to do mergers and acquisitions. M&A offer one way that shareholder value can be increased. A process rooted in strategy and governance can help bring M&A visions to reality. It’s important for boards to establish a culture wherein successful M&A execution is not just a project. It’s a change of state or a transformation that affects how companies approach acquisitions, improving their chances of success.

In this issue, we are delighted to share with you about how boards can help increase shareholder value, reduce tension within the organization, and ultimately improve the odds of success in M&A efforts.

We also explore some of today’s emerging themes around talent and work. Since 2020 there has been a stream of never-ending external disruptions – COVID-19, supply chains, great resignation, social unrest, inflation, soaring interest rates, prepping for ESG compliance and so on. This has significantly expanded the role of the CFO, which means that the time available for controllers to pivot beyond their domain has reduced. With CFOs enabling them to get better at finding and sharing the narrative behind the numbers, controllers may use those skills to build a new story for themselves.

We hope you will find this newsletter an insightful read, and we look forward to connecting and discussing some of these issues in greater detail with you. In the meantime, please reach out to us should you have any questions.

Featured highlights

In M&A, how can boards help companies avoid the synergy trap

Few tools of corporate development and growth can change the value of a company and its competitive future as quickly and dramatically as a major acquisition. Although the results of major mergers and acquisitions over the past several decades have not achieved the intended outcomes for many companies and their shareholders, acquirers who apply M&A fundamentals can still realize significant rewards.

What CFOs can do to help their controllers’ role keep growing

Not very long ago, the role of the controller was evolving almost as speedily as the job of the CFO. With accounting, financial reporting, and compliance as their top responsibilities, controllers could also set their sights on gradually spending more time interpreting data, moving beyond collecting it and offering input into strategic decision-making.
As a result, the controller or chief accounting officer role could be viewed as preparation for the CFO post. In recent years, the breadth of the CFO's role has expanded. Rather than having experience mainly in accounting, candidates can come from non-traditional backgrounds in investment banking or marketing.