In an article published in the Maryland Bar Journal, “Help Your Clients Achieve Greater M&A Success, Starting with a Winning Playbook,” Fred Hencke, Senior Vice President and Segal’s M&A Practice leader, discusses:

• The seven common motivations for an M&A deal
• Attributes of a winning M&A playbook, including how to address negative internal factors — like people, culture and leadership challenges — that can impact the success of the deal and the key steps to follow before a deal is signed

An M&A playbook is a set of best practices that start well before the contract — in fact, well before a potential buyer or seller is ready to move forward with a potential deal — and extends well after the deal closes. It also provides a roadmap for a successful integration.

Advantages of following an M&A playbook

By having a hand in improving the outcome of the deal, you can reduce two risks to your firm: the risk of an unhappy client if the deal does not meet expectations, and the potential to share some of the blame for an unsuccessful deal, even if only in your client’s mind.

What makes a winning M&A playbook?

“Winning” in this context means that the acquired company is a good fit in terms of your client’s motivations, culture, and expected outcomes. It also means the synergy targets are achievable and sustainable.

What makes a winning playbook? It covers the full lifecycle of a deal, starting with business strategy and ending with optimization.

The secondary benefit is that it is dynamic: it includes a set of parameters that allow for adaptation and contingencies as the company moves through the process and learns more about the intended suitor or target.