Closing is just the beginning – The real work starts after the merger or acquisition

Description

Abstract: Regardless of how many spreadsheets a borrower runs or due diligence procedures performed before the deal closes, a lender won’t know if it will be successful until integration is completed. So the real work begins after the closing. A lender should examine how the new entity communicates the merger to its customers and how it transitions them into the new relationship. The company should similarly look to the concerns of its employees so as to retain the best performers. But, if all else fails, a demerger clause can provide a means of unraveling an unprofitable venture within a prescribed time frame.