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Mergers and Acquisitions: How Do You Protect Your Investment? Part 1

Published on 07/08/2018

The number of mergers and acquisitions being considered or in progress is on the rise. Only recently we have seen numerous acquisitions in the Financial, Technology and Pharmaceutical sectors, but what draws organisations to merge with or acquire one another and how can you protect your investment?

There are numerous reasons an organisation may look to mergers and acquisitions as a business strategy including: expanding into new markets, increasing your market share and streamlining your business. Whatever the reason may be, a key consideration is ensuring you gain maximum value from the transaction.

What makes an organisation great, or valuable? In our experience, it’s the people who built it up, the knowledge they have and the Intellectual Property (IP) it owns. Although it’s not always possible to retain key individuals through a merger or acquisition, it is important to capture crucial knowledge and protect all IP.

Software Escrow can play a significant role in safeguarding the transfer of IP when going through the merger or acquisition process. Not only can Escrow ensure that the IP is secured by an independent third party prior to completing the transaction, the validation process enables you to capture the unique knowledge key individuals within the target organisation possess. Regardless of whether the key individuals remain at the company post-merger or acquisition, this is secured for the business as you move forward.

As you look to attain finance to engage in a potential merger or acquisition, the Escrow will demonstrate to potential investors that not only are you getting the company and the benefits that come with it but you are providing assurances that you’ll also protect the IP and the knowledge to accurately and effectively redeploy the application.

SES is a trusted partner to clients in more than 40 countries. If you are interested in finding out more about how Escrow can protect your investment when entering into mergers and acquisitions, please get in touch and one of our specialists will get back to you within one business day. 

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