The growth of global businesses is being stifled by weaknesses in planning mergers and acquisitions, Eversheds LLP said.
Dealmakers at 43 percent of more than 400 multinational companies surveyed by the international law firm said “challenges” during the integration of acquisitions into their companies were due to planning errors before to the deal, Eversheds said in an e-mailed report.
“Businesses need to join the dots between the different stages of the deal cycle more effectively and move the focus from just simply ‘doing the deal’ to thinking about life for the business beyond the deal,” Robin Johnson, mergers and acquisitions partner at Eversheds, said in today’s report.
Integration of a target proceeded as expected for 86 percent of companies that involved their in-house legal teams at an early stage of a transaction and for 63 percent of companies that brought in lawyers later, according to the report. A lower proportion of failures were reported when lawyers with experience of 10 or more cross-border mergers and acquisitions were used, the company said.
Eversheds interviewed more than 400 general counsels or legal experts at companies around the world who were involved in cross-border deals of at least $100 million in the past three years. In total, respondents worked on more than 3,000 trans-boundary deals, and 80 percent of respondents were not Eversheds clients, according to the law firm.