One of the strategies of expansion of a company may be in the acquisition of others or in the merger. A movement that involves two sides (buy-side) and the organizations willing to buy and that present themselves in the market to be sold (sell-side). For both parties, planning and methodology are required.
In particular for the buy-side, after all, it is the side that is in search of this growth in its activity. According to the business consultant Leonardo Grisotto, co-founder and managing partner of Zaxo, boutique of M&A (Mergers and Acquisitions), business specialized in offering customized advice to both sides of the process, the decision to go to the market to buy demand rigor in some procedures.
The expert summarizes these measures in a checklist.“These are steps that, if well observed and fulfilled, enhance the buy-side for a successful negotiation”, he says. Check out the points highlighted by the consultant:
1. Market research, for the assessment of cyclical conditions, projections and prospects;
2 Opportunity mapping, so that the one that best meets the purposes and specificities of the buy-side is identified;
3 Strategic analysis: it is not enough just to map and identify. It is necessary a strategic analysis, internal and external (conjuncture, market and the other side, that is, the sell-side, the business willing to sell);
3 ^ Framework, an important element of strategic analysis, but with a more specific focus on a particular aspect of the process;
4 4 Execution of the negotiation, so that it is a win-win relationship M&A process, that is, advantageous for both parties, healthy for the market;
5 (after merger or acquisition). This includes from the integration of the teams and employees of the organizations involved to systems and procedures.
According to Grisotto, each of these steps has decisive importance.But he draws special attention to PMI (Merger Integration Post“the integration between the organization that bought and the one that sold is often the most delicate, most critical point.Not always corporations and people are prepared to do this” integration, he notes.
The Zaxo expert explains that the term buy-side is used in the financial market, referring to the buyer/investor side, such as investment funds themselves, insurance companies, pension funds, asset managers and of course, medium and large companies. However, he points out, it also applies to medium and large companies interested in mergers and acquisitions. “The M&A process requires methodology for both sides, buy and sell-side”, he reiterates.
In Grisotto's assessment, although the global scenario is impacted by ongoing war conflicts (in the Middle East and the Russia versus Ukraine war), the market for mergers and acquisitions continues to warm. Corporations mainly from the United States and China carry out purchasing movements in several countries, from local companies, in the most varied economic activities.
In Brazil, internally, analyses also signal a movement of mergers and acquisitions.Only in the first month of the year, at least 85 of them were mapped by PwC Brasil.In a report released in March, the consultancy announced that, in 2024, mergers and acquisitions in the country should grow compared to 2023.
