CFO leadership in today's deal-rich M&A environment

Getty

Note from the editor

The merger and acquisition climate has been good for some time and is likely to continue being good even as economic uncertainty grows. That's because there remains ample liquidity, relatively low interest rates and plenty of target companies. But there are hurdles, too, separate from the omicron Covid variant and other hard-to-gauge macro trends.   

In the first nine months of 2021, companies pursued almost 45,000 deals valued at almost $4.5 trillion —a record, according to industry data.

This level of dealmaking comes with challenges. Consulting firms, which help parties decide if a deal makes sense, are working hard to meet demand, as are insurers, who provide essential reps and warranties coverage.  

The government’s role is in the spotlight as well, as it tries to keep deals flowing while making sure combinations are okay from a regulatory standpoint. 

These pressure points are important but it’s the nuts and bolts of deals that remain the core concern of CFOs. In the end, how the transaction is analyzed, structured and executed determine whether it’s the right move from a strategic standpoint. That’s where the skill and insight of CFOs and their finance teams, working with outside specialists, become crucial for success.

To help you as you pursue your organization’s strategy, we’ve compiled a handful of CFO Dive pieces that look at best practices, and some pressure points, characterizing M&A in today’s deal-rich environment.

Robert Freedman Editor

M&A will be hard to derail this year, specialists say

Well-capitalized companies, private equity firms and SPACs are expected to drive robust mergers and acquisitions even if the central bank tries to cool markets.

• Published Nov. 1, 2021

3 reasons why M&A efforts fail

Companies conduct due diligence to discover why they shouldn't buy a company, but the mechanics of the process shouldn't kill deals. Unfortunately, that happens too often.

• Published Nov. 1, 2021

How M&A drove CFO's review of company culture

Mediafly CFO-COO John Evarts saw a bigger project when he was asked to assess the company's first acquisition target.

• Published Nov. 1, 2021

M&A: Integration is in, holding companies are out

Setting up a holding company for an acquisition that expands the scope of a company's business might make sense temporarily, but integration can make a better long-term solution.

• Published Nov. 1, 2021

Mergers could hit rep and warranty insurance snag

Deals increasingly have to fit squarely in carriers' preferred underwriting bucket to get covered, specialists say.

Dearth of third-party deal analysts slowing acquisitions

Record-setting M&A volume has put the Big Four and other consulting firms in an unusual position: turning down business.

• Published Nov. 1, 2021

Reverse merger helped recession-hit Axogen regain its footing

The nerve-repair biotech found an unlikely partner in a company that had fallen on its own hard times.

• Published Nov. 1, 2021

CFO leadership in today's deal-rich M&A environment

The M&A climate has been good for some time and is likely to continue due to ample liquidity, low interest rates and vast target companies in the lingering days of the pandemic. However, with a record-breaking valuation of deals having been pursued in the first nine months of 2021, there are several financial and operational challenges.

included in this trendline
  • M&A will be hard to derail this year, specialists say
  • How M&A drove CFO's review of company culture
  • Reverse merger helped recession-hit Axogen regain its footing
Our Trendlines go deep on the biggest trends. These special reports, produced by our team of award-winning journalists, help business leaders understand how their industries are changing.
Davide Savenije Editor-in-Chief at Industry Dive.