Deferring to advisors during the M&A process can be detrimental to a company, as evidenced by the back and forth over Valeant Pharmaceuticals’ unsolicited $53 billion bid to acquire Allergan, the maker of Botox.
The maneuvering over the past several months has become heated and off-track. Or as the Deal Professor column puts it:
“Some smart lawyers, bankers and executives appear to be so consumed with outmaneuvering the other side that they’ve lost sight of what their ultimate goal is: the future of Allergan itself.”
This is why company leaders should be actively involved in the entire process rather than leaving it to lawyers, bankers or other external advisors. While these advisors are important, you as the company leader are the one who will execute your strategy, including growing through mergers and acquisitions.
In addition, if you find yourself in a position where you are trying to “outsmart” the other side, take a step back. This may not be the right partner for you. It’s okay (and sometimes best) to walk away from a deal when it’s not in line with your strategy.
Leading throughout the acquisition process and sticking to your strategy will keep everyone aligned with your ultimate goal: company growth.