Cross-Border M&A: 10 Key Trends From Across the Pond

It will come as no surprise that cross-border M&A is impacted by the world we live in, with geopolitical tensions, rising inflation and interest rates, currency fluctuations, and increased regulatory scrutiny all playing their part in making deals more challenging to execute. 

That said, cross-border M&A remained largely resilient in 2022, with a return to healthy pre-pandemic levels, and while the types of deals we see in 2023 may evolve, many observers believe that deal volume will remain buoyant throughout the year.

This post highlights 10 key trends that shaped global M&A market activity in 2022 – and will likely continue to impact deals into 2023.

New law eases M&A registration restrictions

New legislation will bring some clarity to the mergers and acquisitions process for transactions with private companies.

President Joe Biden recently signed an omnibus bill package for fiscal year 2023, which included the Small Business Mergers, Acquisitions and Brokerage Simplification. This legislation provides an exemption for M&A advisers and business brokers from the U.S. Securities and Exchange Commission (SEC) broker-dealer registration when serving private company buyers and sellers.

The new exemption is an amendment to the Securities Exchange Act of 1934 and seeks to correct the existing regulatory regime by acknowledging the difference in M&A transactions for public companies versus private companies.

“The purpose for this whole effort started with the ambiguity created when our ‘one-size-fits-all’ federal system of securities regulation is applied to private company merger and acquisitions transactions,” said Shane Hansen, partner at Warner Norcross + Judd.

Top Exit Planning Strategies in 2023

Looking to capitalize on the resurgence in M&A activity expected in 2023?

You’re not alone - it is likely that many business owners will be considering exit planning strategies to capitalize on the anticipated favorable market conditions this year.

Whether you’re considering a sale, merger, or other exit strategy, it is important to have a solid plan in place to maximize the value of your business.

AN EARN-OUT

An earn-out is a type of agreement that allows the seller to receive additional payments based on the future performance of the business.

This is a powerful tool for sellers who believe that their business has significant growth potential as it allows them to capture some of that value even after the sale.

Earn-outs, however, can be complex and require careful planning and negotiation to ensure that the terms are favorable to both the buyer and seller.

A STRATEGIC BUYER

A strategic buyer is a company that is interested in acquiring your business because it complements their existing operations or expands their market reach.

Strategic buyers are often willing to pay a premium for a business that fits well with their strategic objectives and they often also offer other benefits, such as access to resources or expertise.

Working with a strategic buyer can be a win-win situation for both parties, but it is important to identify the right buyer and negotiate favorable terms.

A Leveraged buyer (LBO)

An LBO is a type of acquisition in which the buyer uses a combination of equity and debt to purchase the business. This can be a good option for sellers who are looking for a quick exit and want to minimize their ongoing involvement in the business.

However, LBOs can also be risky for buyers, as they often involve taking on a significant amount of debt. It is important to work with experienced advisors to structure the deal in a way that is fair and reasonable for both parties.

Regardless of the strategy you choose, it’s important to start your exit planning well in advance. Taking steps to maximize the value of your business by improving your financial performance, strengthening your management team, and building strategic relationships will all help increase the value of your business.

Starting to exit planning early will also give you time to identify potential buyers or partners and negotiate favorable terms.

It’s important to work with experienced M&A advisors and legal professionals throughout this process. These individuals can help navigate the complex process of selling a business, and ensure that all parties are satisfied with the final outcome.

Start planning early and be prepared to negotiate carefully to ensure a successful exit to maximize the value of your business,

Bank M&A activity hits five-year low

According to data from S&P Global Market Intelligence, banking sector mergers and acquisitions activity reached its lowest level in the past five years in 2022, even lower than pandemic-affected 2020.

North America, which accounts for the highest number of bank M&A, had a 24.6 percent decline in the number of deals in 2022.

“U.S. banks stayed on the sidelines as heightened regulatory scrutiny and delayed closing timelines became major obstacles in M&A activities during the year,” the report stated.

Canadian institutions were heavily involved in some of the largest bank deals in 2022, with involvement in three of the five largest banking deals in North America. Toronto-Dominion Bank’s pending acquisition of Memphis, Tenn.-based First Horizon Corp. in an all-cash transaction valued at $13.67 billion was the largest bank M&A deal of 2022 and the fifth-largest U.S. bank M&A transaction in the last 15 years.

Best Strategies to Build a Corporate Development Team in the Lower Middle Market

Whether you're looking to expand your business, acquire new assets, or simply stay competitive, having a dedicated team of professionals can make all the difference. This is especially true in the lower middle market, where businesses may face unique challenges and opportunities.

Building a corporate development team in this market requires a combination of strategic thinking, industry expertise, and effective communication skills.

So, what are the best strategies for building a corporate development team in the lower middle market?

Let's take a closer look.

Understand the Market

The lower middle market can be a complex and diverse landscape, with a wide range of businesses operating in various industries. Before building a corporate development team, it’s important to understand the market and the key players in it.

This means researching industry trends, analyzing competitors, and gathering data on potential acquisition targets. By gaining a deep understanding of the market, you can identify opportunities for growth and develop a clear strategy for your corporate development team.

Hire the Right People

Building a strong corporate development team requires hiring the right people. This means finding individuals with the right mix of skills, experience, and personality traits. Look for candidates with a strong financial background, excellent analytical skills, and a deep understanding of the industry.

It’s also important to find people who are collaborative, communicative, and able to work well in a team environment. When building your team, focus on diversity, both in terms personal background, culture and perspectives.

Develop a Clear Process

One of the keys to a successful corporate development team is having a clear and well-defined process for evaluating potential acquisitions. This process should include a series of steps, from identifying potential targets to performing due diligence to negotiating a deal.

By having a clear process in place, you can ensure that everyone on the team is aligned and working towards the same goals. It’s also important to have clear guidelines for how decisions will be made and who will have final say.

Focus on the Culture

Creating the right culture is essential to building a successful corporate development team. A strong culture built on shared values, trust, and respect can help you attract and retain top talent.

Leverage your network

Finally, don't underestimate the power of your network. Reach out to industry contacts, peers, and professional associations to find potential candidates. You may also want to consider working with a recruiter or business brokers who specializes in corporate development. They can help you identify top talent and streamline the hiring process.

Building the future team of who you want to run your business is a critical time in the growth of your business. Embrace this process with clear intention and effective leadership. By implement these strategies, you’ll be well on your way to building the most cohesive and effective team to reach your business’ potential.

M&A In 2023: 4 Actions To Win The Race For Returns

Throughout most of the past two years, acquisitive companies turbo-charged their due diligence processes as mergers and acquisitions (M&A) values topped the record highs set in 2015 ($3.96 trillion) and 2007 ($3.67 trillion), per data from White & Case. After the pace of dealmaking decreased in late 2022, the need for speed has shifted to the time it takes a deal to achieve its projected returns.

While investment bankers and other M&A specialists disagree on their projections of the M&A landscape in 2023, virtually all boards of directors agree on one thing: They want to see results sooner rather than later.

Meeting this expectation falls squarely on the CFO. As the primary internal sponsors of M&A transactions, finance leaders must ensure due diligence efforts are comprehensive enough to satisfy the shortening timelines for returns on acquisition that more boards and investors demand. This means CFOs will need to exercise and emphasize different M&A muscles in 2023 than they have in the past 24 months.

Will the global M&A market take off again in 2023?

Last year is being termed a ‘tale of two halves’ for M&A activity. While global M&A saw record levels of dealmaking in the first half of the year, the second half experienced a considerable slowdown as the market was impacted by the war in Ukraine, inflationary pressures, rising interest rates and continued political uncertainty. 

The question for 2023 is how the M&A market responds to the ‘perma-crisis’ state we are now living through with geopolitical tensions raising political, economic and energy security issues. 

Inflationary pressures are challenging asset valuations in deals, and in some cases testing business viability. The rise in interest rates around the world, and associated increased cost (and lesser availability) of debt, may make some deals more difficult.

However, despite these challenging conditions, M&A markets are far from closed. Among the drivers of ongoing deal activity are carve-out transactions, as large companies look to reshape their portfolios in order to shore up balance sheets and deliver value to shareholders, and transformational deals as they seek to drive change in their business towards digitalisation, energy transition or rebalancing of supply chains. 

Top Tips to Grow your Middle Market Business Quickly

So you’ve established your business within the lower middle market, but now you’re looking to grow. And quickly.

Growing your middle market business quickly can be both challenging and rewarding. The middle market is a sweet spot between small businesses and large corporations, where you have more resources and flexibility than the former, but also more agility and room for growth than the latter.

To make the most of this opportunity, you need to be strategic, creative, and focused on your goals. In this article, we'll share some top tips to help you grow your middle market business with speed so you don’t waste any time reaching your business’ full potential.

Invest in Corporate Development

Corporate development is an essential part of growing a middle market business. It involves identifying opportunities for growth, evaluating strategic partnerships and acquisitions, and assessing the risk and potential impact of each opportunity. Corporate development can help you expand your market share, diversify your product offerings, and increase your overall revenue.

Corporate development teams typically work closely with senior management, board members, and other stakeholders to evaluate potential mergers and acquisitions, joint ventures, partnerships, divestitures, and other strategic transactions that can help the company expand its operations, enter new markets, diversify its portfolio, or achieve other strategic objectives.

Define your niche and value proposition

To stand out in a crowded market, you need to have a clear idea of what makes your business unique and valuable to your customers. This starts with defining your niche, or the specific segment of the market that you're targeting, and then crafting a compelling value proposition that explains why your products or services are better than your competitors'. Make sure to research your target customers' needs and preferences, and tailor your message accordingly.

Focus on customer acquisition and retention

Growing a middle market business quickly requires a steady stream of new customers, as well as a high retention rate of existing ones. To achieve this, you need to invest in marketing and sales strategies that resonate with your target customers, such as social media advertising, email marketing, and referral programs. You also need to provide excellent customer service and build strong relationships with your clients, so they keep coming back and referring others.

Leverage technology and innovation

Technology and innovation can be powerful enablers of growth for middle market businesses. By adopting new tools, platforms, and processes, you can streamline your operations, reduce costs, and increase productivity. For instance, you can use automation software to handle repetitive tasks, cloud-based solutions to store and share data, and analytics tools to track your performance and identify new opportunities.

Pursue strategic partnerships and collaborations

Finally, growing a middle market business quickly often involves forging strategic partnerships and collaborations with other businesses, organizations, and stakeholders. Look for opportunities to team up with complementary players in your industry, such as suppliers, distributors, or service providers. Also, consider joining industry associations, attending conferences, and participating in networking events to expand your reach and influence.

Build a strong team and culture

Growing a middle market business quickly also requires a strong team that shares your vision, values, and work ethic. Hire the best talent you can afford, and provide them with the training, support, and incentives they need to excel. Also, create a positive and inclusive company culture that fosters innovation, collaboration, and personal growth. Your employees are your most valuable asset, so invest in them wisely.

Growing a middle market business quickly is a multifaceted challenge that requires a combination of corporate development, strategic thinking, customer focus, technology adoption, talent management, and partnership building.

Follow the strategies outlined above and you’ll be well on your way to creating a thriving, sustainable, and impactful business that serves your customers, employees, and stakeholders.

U.S. oil & gas M&A hit 17-year low; big firms dominate deals-report

U.S. oil and gas deal-making declined by 13% last year to $58 billion compared to 2021, according to energy technology firm Enverus, with the volume of activity hitting its lowest level since 2005 as buyers became more choosy about asset purchases.

The decline comes as large companies with strong balance sheets are targeting the best properties in deals valued upwards of a billion dollars, while smaller firms with discounted equity have been unable to find financially attractive assets, Enverus wrote in a note on Tuesday.

Oil companies are also grappling with less productive wells, with some viewing asset purchases as a way to keep oil and gas flowing. Larger companies with better inventories tend to have a premium built into their stock, giving them more buying power, Enverus wrote.

“It’s a market where the rich get richer,” said Andrew Dittmar, a director at Enverus who focuses on mergers and acquisitions.

Best Ways to Source Middle Market Deal Flow in Corporate Development

As a corporate development professional, finding high-quality deal flow is critical to the success of your organization. However, sourcing middle-market M&A deals can be challenging, especially when you’re competing against other buyers.

In this article, we’ll explore some of the best ways to source middle-market deal flow in corporate development, including leveraging your network, creating an effective succession plan, working with intermediaries, and conducting proactive outreach.

Leverage Your Network

One of the most effective ways to source middle-market M&A deal flow is by leveraging your network. This means building and maintaining relationships with people who can provide you with leads on potential deals. This could include business brokers, investment bankers, private equity firms, commercial lenders, attorneys, accountants, and other professionals in the industry.

To build a strong network, attend industry conferences, join relevant professional associations, and participate in online forums and groups. Don’t forget to stay in touch with your existing contacts by sending them updates on your company’s activities, sharing industry news, and inviting them to events.

Succession Planning

One of the most effective ways to source middle market deal flow is through effective succession planning. Succession planning involves identifying potential acquisition targets by analyzing their ownership structure, management team, and potential for growth. Companies that are family-owned or have aging leadership teams are great targets for acquisition.

Work with Intermediaries

Intermediaries such as investment banks, business brokers, and M&A advisors can be valuable partners in sourcing middle-market deals. These professionals have access to a wide network of potential sellers and can help you identify and evaluate acquisition opportunities.

When working with intermediaries, it’s important to establish clear expectations and communication channels. Make sure you provide them with a clear understanding of your acquisition criteria and preferred target markets. Be prepared to ask the right questions and conduct thorough due diligence to ensure the deal is a good fit for your organization.

Conduct Proactive Outreach

Another way to source middle-market deal flow is by conducting proactive outreach. This involves identifying potential targets and reaching out to them directly. This can be done through various channels, including cold calling, email, or social media.

To be successful in this approach, it’s important to have a well-defined target market and acquisition criteria. You should also have a compelling value proposition and be able to clearly articulate why your organization is the best fit for the potential seller. Finally, be persistent and follow up regularly to maintain momentum and build a relationship with the seller.

Sourcing middle-market deal flow is critical to the success of any corporate development strategy. While it can be challenging, leveraging your network, working with intermediaries, and conducting proactive outreach can help you identify and evaluate potential acquisition opportunities.

By developing a robust deal sourcing strategy, you’ll be well-positioned to identify and execute on the right deals that will drive growth and success for your organization.

UPSTREAM M&A FALLS 13% YEAR-OVER-YEAR IN 2022 TO $58B

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, is releasing its summary of 4Q22 upstream merger and acquisition (M&A) activity. For 2022, U.S. upstream M&A saw $58 billion transacted in 160 deals, including $13 billion from 26 deals in the fourth quarter.

While deal values are down just about 20% from pre-pandemic averages, the volume of deals has collapsed to a nearly two-decade low as activity has been driven by large companies targeting the highest quality assets in billion-dollar-plus deals.

“Large-cap public companies like Devon Energy, Diamondback Energy, and Marathon Oil dominated deal activity in the back half of 2022,” said Andrew Dittmar, director at Enverus Intelligence Research.

“These buyers have the balance sheet strength and favorable stock valuations to take advantage of large, high-quality offerings from private sellers. Critically, they can strike deals that both accretive to current cash flow and extend their runway of drilling locations. For smaller companies, which are still having their equity value discounted, it is challenging to thread the needle of buying assets at accretive multiples and being able to pay for inventory.”

Why a declining economy could spur increased M&A activity in the mobile gaming industry

With a recession in the offing, the coming year is shaping up to be a difficult one for business across the gaming industry, including the mobile gaming sector. But while the recession brings challenges for mobile game developers, that doesn’t mean M&A activity in the space is going to slow down in 2023.

M&A has been a consistent source of growth for mobile gaming companies in recent years. Much of Zynga’s growth between 2016 and 2020 was a result of its ample acquisitions of other mobile game studios during the period, according to Chris Petrovic, who led M&A at the company at the time. In 2023, the M&A action has continued: Just last week, Playtika announced a nearly $738 million deal to acquire Rovio, the developer of popular mobile games such as “Angry Birds.”

“In 2023, I don’t think the appetite for acquisition will change much,” said Zynga Chief Product Officer Scott Koenigsberg. “I think the targets will probably be younger companies in their evolution, and so we’re going to have to do more analysis to try to figure out what their long-term forecasts would be.”

The aforementioned smaller mobile gaming companies are likely to feel the squeeze of a recession earlier than the Zyngas of the world. Many rely on brands’ advertising dollars to stay afloat, and as those dry up, they are likely to turn toward acquisitions as a potential emergency exit.

Survey: Middle-market Business Leaders Positive on M&A Market in 2023

The 2023 M&A Outlook from Citizens M&A Advisory in Detroit revealed both upbeat expectations for company performance and high desire for growth in a low-growth world in the coming year.

The annual survey of 400 leaders at U.S. middle-market companies and private equity (PE) firms also indicated that buyer and seller sentiment about mergers and acquisitions (M&A) will return to pre-pandemic norms as the macroeconomic backdrop stabilizes.

“Companies exited the pandemic era with a newfound resilience and, in many cases, better finances and more experienced management,” says Jason Wallace, head of Citizens M&A Advisory. “When the macro conditions normalize, we see a pipeline of buyers and sellers eager to return to the market.”

Middle-market M&A players expect conditions to stabilize in 2023

More than 80% of U.S. middle-market companies and private equity firms agree that company valuations will be stable or higher in 2023 after a year of big price adjustments, according to an annual survey by Citizens Financial Group Inc.

Most middle-market companies among the 400 respondents to the Citizens’ 2023 M&A Outlook expect better conditions in 2023 after macroeconomic uncertainty, inflation and steep losses in equities derailed deals in the past year.

Sixty-two percent cited growth as their motivation for M&A deals, up from 48% in 2022.

“When the macro conditions normalize, we see a pipeline of buyers and sellers eager to return to the market,” said Jason Wallace, head of M&A advisory at Citizens Financial Group CFG, +0.51%, in a prepared statement.

Some of that optimism is reflected in shares of bank stocks in 2023, which have started out in positive territory thus far.

Playing to your Strengths: Strategic Deal Sourcing for Multi Family Office

Playing to your strengths is a vital aspect of any successful M&A strategy, and the same holds true for multi family office deal sourcing. Family offices are often tasked with finding and executing high-value investment opportunities that align with their long-term financial goals. In order to do this effectively, it is essential to focus on your strengths and play to them when sourcing deals and succession planning.

One key strength of many multi family offices is their extensive network. Family offices are often closely connected to high net worth individuals, business leaders and other powerful figures in the investment world. This extensive network can be a valuable asset when sourcing deals, as it provides access to a wide range of investment opportunities that may not be available to other investors.

Another strength of multi family offices is their ability to take a long-term perspective on investments. Family offices are often focused on building wealth over several generations, which allows them to take a more patient approach to investments than other types of exit planning. This can be a significant advantage when sourcing deals, as it enables multi family offices to wait for the right opportunity to present itself, rather than rushing into investments and deal origination that may not align with their long-term goals.

Another important strength of family offices is their in-depth knowledge of their investment priorities. Family offices are often closely tied to the interests and goals of their families, which gives them a unique perspective on the types of investments that are most important to their families. This knowledge can be leveraged when sourcing deals, as it allows multi family offices to focus on investments that are most likely to deliver value to their families over the long term.

When it comes to deal sourcing for family offices in M&A, playing to your strengths is essential. Whether it is leveraging your extensive network, taking a long-term perspective on investments, or focusing on your investment priorities, focusing on your strengths can help you to find and execute the best investment opportunities for your family office. By doing so, you can ensure that your family office remains at the forefront of investment success, while also building wealth and security for future generations.

How to Organize your Corporate Development Deal Sourcing

Corporate development deal sourcing is a critical function for companies looking to grow through mergers, acquisitions, and partnerships. It involves identifying, evaluating, and securing strategic deals that will help the company achieve its growth goals.

However, with so many potential opportunities, it can be challenging to keep track of them all and ensure that you are making the best choices for your company. In this blog, we will explore how to organize your corporate development deal sourcing process to increase your chances of success.

1. Establish a Deal Sourcing Team

The first step in organizing your corporate development deal sourcing process is to establish a team responsible for the task. This team should consist of individuals from different departments, including corporate development, finance, legal, and operations. This will ensure that all perspectives are taken into account and that all the relevant information is captured.

2. Create a Deal Sourcing Pipeline

Once you have your team in place, the next step is to create a deal sourcing pipeline. This pipeline should outline the various stages of the deal sourcing process, from initial identification to closing. This will help you keep track of the status of each deal and ensure that everyone is aware of their responsibilities.

3. Use a Deal Sourcing Tracking System

To make the deal sourcing process as efficient as possible, it is essential to have a system in place to track and manage all the deals. A deal sourcing tracking system can help you manage your pipeline, keep track of the status of each deal, and provide a central repository for all the information related to each deal.

4. Define Your Deal Criteria

To ensure that you are sourcing the right deals, it is crucial to define your deal criteria. This should include factors such as geographic location, target industry, size of the company, and any other relevant criteria. This will help you focus your efforts on deals that are the best fit for your company.

5. Conduct Regular Review Meetings

It is also important to have regular review meetings to assess the progress of the deal sourcing process. During these meetings, the team should review the pipeline, discuss any new opportunities, and make any necessary updates to the deal criteria. This will help ensure that the process remains on track and that everyone is aligned on the company's goals.

In conclusion, organizing your corporate development deal sourcing process is essential to ensure that you are sourcing the right deals and making the best decisions for your company. By establishing a team, creating a pipeline, using a tracking system, defining your deal criteria, and conducting regular review meetings, you can increase your chances of success and drive growth for your company.

A timeline for startup M&A processes: Key steps and factors to consider

M&A can be a great outcome for all parties, especially for startup founders and their team. Founders may have conflicting emotions when thinking about selling their company. That is perfectly understandable; in the beginning, many founders hope to build an enduring company.

Not all companies are best positioned to go it alone, and that’s okay.

However, it’s important to acknowledge that there are plenty of good reasons to sell: You can join a “larger rocketship” where 1+1=3; there could be a strong match with an acquirer; burn-out in the startup team; the team or investor wants liquidity; and so on. Further, myriad long-term, standalone companies have been founded by founders who sold or exited their prior companies.

During downturns, think of M&A as a game of musical chairs. The companies that test the market earlier in the cycle (before things have gotten particularly bleak) tend to see better outcomes.

In markets where incumbents are playing catch-up, there is a window when a few companies will get bought. By the time those deals settle, the rest will likely decide to build instead of buying.

How to Optimize your Brand in the M&A Industry

The M&A industry is one of the most lucrative in the world. It's also a highly competitive field, and it can be difficult to break through the noise and establish a unique brand that can stand out from the crowd.

Fortunately, there are some simple steps you can take to optimize your brand for success in this space.

1. Define your brand identity: Develop a clear understanding of your brand values, personality, and differentiators.

   Create a clear vision for your company as a whole, and then break that vision down into smaller parts so that every person on your team knows exactly what they're working toward. This will help ensure that everyone's efforts are aligned with the overall goals of the organization, rather than simply working toward their own personal goals.

2. Evaluate your brand strength: Assess your brand’s reputation, recognition, and market position in the industry.

3. Align brand with strategic goals: Ensure your brand strategy aligns with your overall M&A objectives, such as expanding into new markets or acquiring complementary capabilities.

4. Manage brand integration: Develop a plan for how to integrate the brands of the two companies following the M&A transaction, while preserving the distinctiveness of each.

5. Communicate effectively: Communicate the benefits of the M&A transaction to customers, employees, and other stakeholders, and clearly articulate the new brand identity.

   You should also make sure that all employees understand what makes your brand unique, and how they can contribute to its success. Encourage them to share their ideas with each other and communicate openly about what works well for them and what doesn't work so well—this way, you can all work together toward an even better future for all involved parties.

6. Monitor and measure success: Regularly monitor and measure the impact of the M&A on your brand, and make adjustments as necessary to ensure its continued success.

Finally, it's important not just for you but also for potential partners if possible. If there are other companies in an industry that could benefit from merging with yours (e.g., if both have similar customer bases).

In these cases, it could be a good option for both parties involved in terms of gaining more customers/subscribers who might not otherwise have been interested in either one separately otherwise.

Who are the key members of an M&A transaction deal team?

Mergers and acquisitions (M&A) transactions are complex and require a team of experts to navigate the various stages of the process. The M&A transaction team is made up of several key members, each with their own unique responsibilities and expertise. In this blog post, we will discuss who the key members of an M&A transaction team are and what their roles involve.

1. M&A Advisor: M&A Advisors are key members of the exit planning and succession planning team. They are responsible for identifying potential targets, conducting market research, and negotiating the terms of the transaction. Investment bankers also assist in the due diligence process and provide financial advice to the buyer.

2. Legal Counsel: Legal counsel is an essential member of the M&A transaction team. They are responsible for reviewing and drafting the legal documents associated with the transaction, such as the purchase agreement and any other agreements related to the transaction. They also advise on the legal and regulatory aspects of the transaction.

3. Accountants and Financial Advisors: Accountants and financial advisors are also key members of the M&A transaction team. They are responsible for conducting a thorough analysis of the target company's financials and providing advice on the financial aspects of the transaction. They also assist in the due diligence process and provide advice on structuring the transaction.

4. Integration Team: The integration team is responsible for planning and executing the integration of the target company into the acquiring company. This includes the integration of the target company's operations, culture, and employees into the acquiring company. The integration team should be composed of individuals from various departments within the acquiring company, such as business brokers, finance, human resources, and operations.

5. Operating Executives: Operating executives are key members of the M&A transaction team, particularly for strategic acquisitions. They are responsible for assessing the target company's operations and identifying any potential opportunities or challenges. They also assist in the due diligence process and provide advice on the operational aspects of the transaction.

6. Communication Team: The communication team is responsible for managing the communication between the buyer and the seller, as well as internal and external communication. This includes managing the communication strategy, preparing communications materials, and handling media relations.

In conclusion, M&A transactions are complex and require a team of experts to navigate the various stages of the process. The key members of an M&A transaction team include investment bankers, business brokers, legal counsel, accountants and financial advisors, integration team, operating executives and communication team.

Each member plays a crucial role in the transaction, providing expertise and guidance on the various aspects of the process, from identifying potential targets to closing the deal and integrating the target company into the acquiring company. It is important for the M&A team to work collaboratively to ensure a successful outcome.

Despite Recession Concerns, Six in Ten Healthcare and Life Sciences Investors Plan to Increase M&A Activity in 2023

Amid a challenging economic environment defined by persistent inflation, rising interest rates, recessionary concerns and falling equity values increasing uncertainty, healthcare and life sciences (HCLS) investors are poised to forge ahead with 60% of respondents indicating they plan to increase their M&A activity in 2023 according to new findings from the 2023 KPMG Healthcare and Life Sciences Investment Outlook.

"2022 is a story of both tailwinds and headwinds," said Ash Shehata, KPMG National Sector Leader Healthcare and Life Sciences. "Hospital systems are dealing with rising labor and supply costs while biopharma and medical device companies have been exposed to supply chain, logistics, and labor issues that slow down production. Now is the time for HCLS leaders to adjust their strategies to build durability and resilience within their companies."