Do you think information exchange should happen before finalizing M&A deal? (Merger and Acquisition)?

Expert Solution

Information exchange before finalising the merger and acquisition played important role in the future of the company. Merger and acquisition involves competitor’s present challenges. Competing companies considered merger should continue between the business competitors until its completion. Among the competitors; information sharing has certain limitations. The most important kind of information present in this process are customer information, cost information, confidential product designs, plans and strategies, salaries and other terms of employment etc. Information exchange before the merger and acquisition leads to smooth transaction. In some cases the antitrust risks emerged until the deal closed. If there is no prior information regarding this will affect the returns of the companies and also lead to improper coordination. Appropriate direction and safeguards should be implemented in this prior sensitive information. Most of the companies do not exchange competitively sensitive information. There is proper modification data used to remove the sensitive information.

Rahul Sunny answered 2 years ago

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