What Are Top M&A Concerns for CFOs Post-Transaction?

The biggest concern among corporate board members and CFOs involving merger and acquisition activities is post-deal integration, according to a survey from Deloitte.

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Forty-three percent of corporate CFO respondents said the failure to effectively integrate two organizations following the close of a transaction is their primary worry. Henry Ristuccia, a partner at Deloitte, said integration worries board members, CFOs and other executives alike because “cultural integration remains more unpredictable, and therefore a riskier proposition.”

Here are the six top concerns for CFOs following a successful deal, according to the Deloitte survey.

•    Failure to effectively integrate: 43 percent
•    Changing regulatory and legislative environment: 16 percent
•    Inaccurate target valuation: 14 percent
•    Economic uncertainty: 12 percent
•    Insufficient due diligence process: 8 percent
•    Improper target identification: 4 percent

Deloitte’s M&A survey was based on responses from about 200 corporate directors and CFOs from public companies with annual revenue of $500 million or more.

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