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In: Finance

Describe the role of an investment banker when a company is involved in mergers and acquisitions?...

Describe the role of an investment banker when a company is involved in mergers and acquisitions? (typing please,thank you)

Solutions

Expert Solution

The role of an investment banker when a company is involved in acquisitions and mergers are as follows.

First and for most assess the current culture of each organisation.A clear vision of the company needs to be established.  A contingency plan needs to be created in advance. The transition team should be formed. There should be commitment to communication on various matters involved towards the process. A well time planning needs to be done before hand.

The following are the successful integration strategies which will ultimately lead to meter and acquisition are as follows :-

1. Focus on the money in place and plan accordingly as to how the money can be utilised in an efficient way. Every merger and acquisition requires well though out deal in place in order to achieve the company's core business objectives and strategies.

2. Take necessary corrective actions based on the deal.

3. Try to resolver to all the people and power issues.

4. Make sure to start the integration when you announce the deal

5. Try to manage the integration through organising a " Decision Drum Beat" - a decision drum beat is a way to drag the attention of the senior most management and integration task force quickly on the critical decisions necessary for a merger integration to be a successful one.

6. Choose randomly the leaders for the integration team.

7. Stick to only one culture.

8. Win heart and minds of the people.

9. Try to maintain the momentum in the Base business of both companies and also monitor their performance very much closely.

10. Give enough amount of time to build a repeatable integration model.


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