The art of magic in Mergers and Acquisitions

By suggesting that successful Mergers and Acquisitions are achieved through some form of sleight of hand is to trivialise a part of business that is based on patient attention to detail.

Meticulous research, planning and calculating risk to say nothing of having to build a new corporate identity makes any Merger or Acquisition a complicated and inherently risky business.

The word magic conjures up images of rabbits out of a hat or scantily clad ladies appearing out of nowhere. These are the last things that would put a merger or acquisition clients mind at ease.

With the recent deal between HP and Compaq having made many headlines and cost massive amounts in lawyers, accountants, auditors and analysts I wonder what they would say if their corporate bankers talked of a mystical element provided by a group of "mergitions".

The idea is clever but does it really hit the mark and inspire potential clients to place their business lives in trust with Rand Merchant Bank?

The world of auditors and accountants dealing with mergers and acquisitions is one of figures and absolute attention to detail that leaves nothing open to chance.

A business involved in a merger or acquisition needs to feel confident in their choice of bank whilst under intense scrutiny from the press and shareholders as well as corporate watch dogs set up to monitor and regulate these proceedings.

The clever term "mergitions" trivialises the role that Corporate Bankers play in making sure that these deals don't get severed or worse still, disappear.