As a result of rising interest rates and inflation, companies are holding back the investments. This is also reflected in the M&A activities. However, when the economic outlook brightens, the markets can activate very quickly. We support M&A with strong expertise and experience – now led by a new service head.
Our M&A expert team consists of several skilled and experienced professionals who have served as advisors in numerous transactions.
Now the service has a new leader – Ismo Saari, who is a top professional in the field with 23 years of experience. Saari has built M&A services in multiple Big4 companies and joined Greenstep in August 2023 for new challenges. The goal is to take Greenstep's M&A services to new heights!
A brighter economic outlook is awaited in the M&A market
We interviewed Ismo about the current situation in the M&A market and future prospects.
– It can be seen that the activity in the business acquisition markets has been low since last fall. Interest rates are high, so companies are holding back their investments. The value of businesses fluctuates, and multiples decline. Buyers are waiting to see how low prices can go, and deals are not closed, Saari reflects.
There is also noticeable elongation of processes and even project interruptions on the selling side (divestments). Now it is expected that the rise in interest rates will first stop and then maybe turn downward. As the future prospects become clearer, M&A markets usually recover very rapidly.
– When the outlook becomes clearer, there may be a sudden burst of activity in the market. If there are resources and opportunities to do transactions at this time, they are worth considering - valuations are the most modest they have been in a long time. When the market awakens, prices will rise quickly, Saari ponders.
Even during quieter market conditions, it is good to analyze and identify potential merger and acquisition opportunities. This way, you will be prepared before the market becomes active again. How can businesses prepare now when the market is quieter?
- The quieter time can be effectively utilized by enhancing the company's capabilities. This can be achieved through training and suitable process development. An M&A playbook and a well-trained team successfully and efficiently carry out the corporate transaction.
- In sales processes, it is often sensible to initiate the internal separation process of the divestment business as part of business development. This improves the readiness to proceed with the sales process, saving both time and money. The probability of a successful divestment also significantly increases.
The key to a successful transaction is choosing the right partner
When transactions become relevant to you again, the key to the success of the process is choosing the right partner. In deal processes, the aim is to find the best possible terms for both the seller and the buyer, from price to other arrangement questions. The assistance of a knowledgeable partner is valuable in mergers and acquisitions.
What makes our transaction services unique, is a highly broad expert team and the scale at which companies can be assisted. Greenstep utilizes the expertise of its different teams, such as CFO, HR, legal, tax, ESG, and analytics teams, in all mergers and acquisitions and the related integrations. When all the expertise comes under the same roof, the understanding of business operations is seamless. Greenstep also offers experienced interim experts at a fast pace.
– We can serve our current clients in mergers and acquisitions with a very wide range of services. We already have extremely good insight and understanding of our client companies' operations when we start doing transactions. In mergers and acquisitions, it is important to understand the company's processes and operating models in order to make good integration plans – and that's where we are pioneers.
Saari has an important message for companies for whom contemplating merger and acquisitions is current or future:
– Perhaps the most important thing I have learned in my career is this: success starts with having the right people around you. The same applies to M&A activities. With the help of the right partner you'll achieve the best results.
Let's succeed together – when mergers and acquisitions are relevant to you, don't hesitate to contact us!