Protecting business in merger and acquisition transactions is a key goal, especially as M&A activity grows post-pandemic. These are high-risk transactions that can sour corporate reputations and cost billions. Security professionals must have complete understanding of the companies that are which are being acquired to identify security gaps and minimize risks prior to the deal is completed. Using threat intelligence can help identify the weakest areas in the two firms systems and offer suggestions to improve the security before integration starts.
While some M&A deals are driven by financial considerations but the most successful deals require a more comprehensive approach to branding and business value. This includes the ability to understand what the target markets and customers think about a company’s branding, as well as the reputation of its executives. A strong M&A process is crucial to gaining all the information needed to ensure that the M&A is successful.
A variety of deal-protection features have been integrated into M&A agreements. These include termination fees, matching rights, and asset lockups. While there was some opposition from the courts to these instruments existed during the hostile takeover period, courts have become the advantages of using a data room for board meeting more willing to recognize their use since. The extent to which they increase the return to target shareholders depends on the motivations and behavior of the target directors who accept them, as well as the manner in which they are implemented. This article argues for the case that the terms of an M&A agreement including termination fees and matching rights, are carefully designed in a manner that aligns the interests of directors and management with those of their shareholders, it could increase the chance that a transaction will be assessed at fair market value.