M&A partner Scott Crofton appeared on an episode of M&A Science, where he spoke about the path to successful mergers of equals with host Kison Patel.
In the episode, Scott spoke about his early career and how he developed an interest in the M&A field. He also covered many aspects of a merger of equals including social and tax issues involved, why private deals are often trickier, how to approach board of directors composition and the diligence process, as well as the impact and risks of mergers of equals.
Overall, Scott advised, “Make sure there's a good cultural fit and there's a story that makes sense as to why your key stakeholders, key employees, and also customers and suppliers are going to like this transaction -- a net positive.”
Scott also commented on the poison pill defense, the value of obtaining a fairness opinion, the possibility of stockholder litigation and the pros and cons of mergers of equals.
Check out the episode “The Path to Successful Equal Mergers.”