by Matthew Davies, Head of Strategic Solution Delivery, Global Transaction Services EMEA and Joanne Gill, Head of Global Custody and Agency Services, Global Transaction Services EMEA, Bank of America Merrill Lynch
Many companies may be considering looking into merger and acquisitions (M&A) opportunities as a means of using excess cash to fulfil strategic objectives. However, acquisitions do not always deliver the expected benefits. By bringing the treasurer into the M&A conversation at an earlier point, companies may be better positioned to integrate the new business successfully and benefit from potential synergies.
A number of factors are driving M&A activity in the current market. For one thing, corporations may have record long cash positions on their balance sheets following a cautious outlook and a lack of M&A activity over the last few years. For another, the cost of debt in the market is currently very low, meaning that companies can tap into attractive prices when funding acquisitions.
By bringing the treasurer into the M&A conversation at an earlier point, companies may be better positioned to integrate the new business successfully and benefit from potential synergies.
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