On the one hand, organic growth guarantees a certain degree of certainty with regard to the methods and quality of the activities involved in development of a new project (e.g. a new product, opening of foreign branches or set-up of a new plant). On the other hand, it often requires access to specific information and skills that are not always immediately available in the company and that could delay execution times.
External growth with mergers and acquisitions (M&A) ensures quicker set-up times, access to specific resources and the possibility of benefiting from synergies at the level of the extended group. However, it could present greater uncertainty regarding the correspondence of the characteristics of the target company, highlighting a gap between those declared before the acquisition and those verified once the operation is concluded.
Whatever the path chosen for the development of your company, the main objective will remain to maximise the benefits and minimise the risks of such complex and extraordinary processes. For this reason, it is essential that the entrepreneur not only have specific knowledge of the industry, but also avail himself of the technical expertise of external consultants and advisors who can support him in activities such as: market analysis, the preparation of a medium-long term business plan, financial, fiscal, legal and environmental due diligence, etc.
The advisors will then be involved in the procurement of financial resources and, among other things, in the negotiation of the terms of the acquisition contract (price, declarations and guarantees, etc.). The latter is particularly important, in order to minimise the risks deriving from possible negative “surprises” after acquisition, and not only.
Banca Ifis, through its Corporate & Investment Banking division, provides SMEs and Large Corporate teams specialised in the world of M&A consultancy and financing of structured and extraordinary finance operations to support every type of need and industrial sector.
by
Cataldo Conte
Corporate & Investment Banking Manager
I graduated in Business Administration with a master’s degree in Corporate Finance at SDA Bocconi, and worked with several international banks. At Banca Ifis I have always been involved in financing institutional investors and companies as Structured Finance Manager and, since 2018, as Corporate & Investment Banking Manager.
