The role of Governance in preparing for M&A

At a time of serious corporate scandals in Brazilian companies, corporate governance processes and mechanisms are underlined, confirming that the use of good management tools, as well as being effective in evaluating corporate strategies, also ensure the longevity of companies.

Through the boards of directors, the principles and values of the company will be defined and monitored. It will also be through this council that audit actions will be executed, being the collegiate, responsible for ascertaining irregularities and possible deviations from the code of corporate governance.

The implementation of the governance process can also be developed in small and medium-sized companies and should be carried out gradually, as it will require a new culture and, above all, total transparency of its shareholders and advisors.

Many companies intend to take advantage of the economic moment in the country to gain competitiveness. On the part of companies wishing to start an M&E process, the company’s preparation for the merger or acquisition process is a priority.

There is no doubt that from the point of view of transparency, the use of good management tools generates immense benefits to the company, especially in the initial preparation for an M&E process, and later when the company has to open its doors to Due Diligence.

Companies that have a business environment where strategic planning, balance sheets and profit and loss statements are audited and monitored by the Board, convey greater confidence to the market, and are also more likely to succeed in the search for investors.

Andressa Lucas de Freitas

Market intelligence

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