The rapid growth in M&A activity across the technology, media and telecommunication (TMT) industry brings with it material post-merger activities that are time consuming, often cumbersome and involve multiple stakeholders. Nevertheless, although the integration phase of a deal seldom grabs headlines, it is a primary factor in determining the success, or otherwise, of the deal’s outcome. Sacha Deal, Global Sector Head and Vivek Anand, Regional Sales Sector Head, Asia Pacific – Technology, Media and Telecommunication, Global Liquidity and Cash Management at HSBC explain how the early involvement of a corporation’s treasury and cash management bank can have a highly positive effect on the integration phase and therefore also on the speed at which value is unlocked by the M&A deal as a whole.
M&A deal teams are traditionally kept small for a variety of reasons and the treasury function may not be involved until a deal is well advanced. The challenge with this approach is that it is likely that those who are involved in M&A discussions may have limited understanding of the treasury and cash management implications of the transaction.