One of the strategies for a company's expansion may be through the acquisition of others or through merger. A movement that involves two sides – the organizations willing to buy (buy-side) and those that are presented in the market to be sold (sell-side). For both parties, planning and methodology are necessary
In particular for the buy-side, after all, it is the side that is in search of this growth in its activity. According to business consultant Leonardo Grisotto, co-founder and managing partner of Zaxo, M&A boutique (Mergers and Acquisitions), business specialized in providing customized advisory to both sides of the process, the decision to go to the market to buy requires rigor in some procedures
The specialist summarizes these measures in a checklist. "These are steps that, if well observed and fulfilled, they empower the buy-side for a successful negotiation, affirms. Check the points highlighted by the consultant
1 – Market research, for the assessment of the conjunctural conditions, projections and perspectives
2 – Mapping of opportunities, to identify the one that best meets the purposes and specificities of the buy-side
3 – Strategic analysis: it is not enough to just map and identify. A strategic analysis is needed, internal and external (juncture, market and the other side, this is, do sell-side, of businesses available for sale
3 – Framework, an important element of strategic analysis, however with a more specific focus on a certain aspect of the process
4 – Execution of the negotiation, for it to be a win-win M&A process, that is to say, advantageous for both parties, healthy for the market
5 – A post-buy integration plan (post-merger or acquisition). This includes everything from the integration of teams and employees of the involved organizations to systems and procedures
According to Grisotto, each of these stages has decisive importance. But he draws special attention to the PMIPós-fusão Integração, that is to say, the integration after the acquisition. The integration between the organization that was bought and the one that was sold is often the most delicate point, more critical. "Not always are corporations and people prepared to make this integration", observe
The Zaxo specialist explains that the term buy-side is used in the financial market, referindo-se ao lado comprador/investidor, as investment funds as such, insurance companies, pension funds, asset managers and clear, media and large companies. However, highlights, it also applies to medium and large companies interested in mergers and acquisitions. The M&A process requires methodology for both sides, the buy and the sell-side, reiterates
In Grisotto's assessment, although the global scenario is impacted by ongoing military conflicts (in the Middle East and the Russia versus Ukraine war), the mergers and acquisitions market remains active. Corporations mainly from the United States and China are making acquisition moves in various countries, of local businesses, in the most varied economic activities
In Brazil, internally, analyses also indicate a trend towards mergers and acquisitions. Only in the first month of the year, at least 85 of them have been mapped by PwC Brazil. In a report released in March, the consultancy announced that, in 2024, mergers and acquisitions in the country are expected to grow compared to 2023
