Over the next 12–24 months, an uptick is expected in Mergers and Acquisitions activity across a wide range of transaction types, from minority stake sales to large-scale M&A.
Consolidation and strategic partnerships will allow alternative investment (AI) firms to offer a more diverse range of products and strategies to investors, provide access to new distribution channels, and facilitate succession planning and the ability to retain top talent.
As the appeal of M&A grows, it is important for buyers to keep top of mind both the unique and sometimes fickle nature of the business they are acquiring as well as the management team they are investing in. Conducting a comprehensive due diligence review of both the manager and its funds under management, and structuring deal terms that take these factors into consideration, can greatly limit the risk of the deal and preserve the value a buyer expects from the transaction.
Read the article for a few ideas to consider in an attempt to limit risk and preserve value and for more information on the key factors that may continue to fuel M&A activity