The M&A is a complicated process and requires the company to conduct research and planning before the actual application. Meanwhile, the preparation stage’s role cannot be underestimated, as it contributes to the understanding of potential threats and opportunities. It is critical to determine a relevant action plan, which will prepare Caracal Light Ammunition (CLA) to the actual process while proposing the matters, which have to be emphasized during the implementation stage.
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Firstly, value creation and establishing the objectives and goals have to be prioritized since it helps CLA maintain its finance on a sufficient level (Chanmugam, Shill, Mann, Ficery, & Pursche, 2005). In this case, the acquisition’s primary goal is to enhance the flow of the processes within the organization, as the ownership of Expert Future Cargo will assist in the reduction of costs and improvement of the logistics. Consequently, the acquisition’s critical intention is to advance the production process and the financial performance, and it could be said that selecting the required personnel, training, and leadership to ensure the efficiency of the process has to be prioritized.
Meanwhile, the management of CLA has to evaluate to ensure the organization’s functioning at a sufficient level, as the information provides the company with the basis for the decision-making (GeorgePShenas, 2009a). In this instance, the company has to access various acquired firm matters, including its financial performance and liquidity (GeorgePShenas, 2012). Furthermore, this analytical process defines CLA’s subsequent actions while providing the rationale for its future actions. In the context of the presented case, the company has to expand knowledge about the potential firms for acquisitions such as Expert Future Cargo. This aspect will define the company’s success in the future while affecting financial performance dramatically.
Furthermore, the risk assessment can be regarded as one of the critical instruments for completing the acquisition due to the matters related to the presence of conflicts and inadequate actions of the integrated company after the procedure (Lynch & Lind, 2002). The existence of the transparency will ensure the relationships with the rationale behind the decision-making and improve the quality of the overall process (GeorgePShenas, 2009b). It could be said that the risk assessment will not only help understand the overall threats related to the acquiring firm but also determine the potential jeopardies related to the external environment. This approach will help assess the issue from dissimilar perspectives while depicting all internal and external issues.
In turn, the evaluation of the required time will have an advantageous influence on the company’s functioning as the acquisitions are beneficial while being implemented within 12-24 months (Chanmugam et al., 2005). In the context of the presented case, the overall process will be implemented within 12 months due to efficacious leadership and communication network. Nonetheless, the due diligence timeline will be maintained since this aspect is critical for monitoring the costs and incomes related to the operations of CLA.
In the end, a combination of these factors will contribute to the understanding of the risks and opportunities related to the decision-making while preparing the organization for the potential changes and fluctuations in the environment. Nonetheless, CLA has to prioritize the goal setting, and personnel selection as the subsequent matters are dependent on this aspect. In turn, the information analysis and risk assessment role cannot be underestimated, as they define the rationale and appropriateness of the acquisitions while defining the due diligence timeframe.
Chanmugam, R., Shill, W., Mann, D., Ficery, K., & Pursche, B. (2005). The intelligent, clean room: ensuring value capture in mergers and acquisitions. Journal of Business Strategy, 26(3), 43-49.
GeorgePShenas. (2009a). Due diligence during the M&A process – Part 1. Web.
GeorgePShenas. (2009b). Due diligence during the M&A process – Part 2. Web.
GeorgePShenas. (2012). Due diligence during the M&A process – Part 2. Web.
Lynch & Lind, (2002). Escaping merger and acquisition madness. Strategy & Leadership, 30(2), 5-12.