By Ginika Okoye
A financial and capital market expert, Dr Dayo Obisan, says systems and data integration is one the challenges of organisational mergers and acquisitions.
Obisan said this at the virtual 12th Fellowship and Inaugural Lecture of the Capital Market Academics of Nigeria (CMAN) in Abuja.
The News Agency of Nigeria (NAN) reports that the lecture was coming as the Central Bank of Nigeria (CBN) banks’ recapitalisation deadline draws closer by March 31.
He said that other challenges crippling mergers and acquisitions included cultural alignment and leadership retention risks, stakeholders management, foreign exchange (FX) constraints and repatriation issues.
Obisan, former Executive Director of Operations at the Securities and Exchange Commission (SEC), also said that regulatory and licence transfer delays also hampered mergers and acquisitions.
According to him, mergers and acquisitions can unlock scale and capabilities in Nigeria but requires disciplined execution.
He said that mergers and acquisitions could be driven by market share expansion and consolidation, diversification and non-dependence, acquisition of technology and capabilities, among others.
“Success hinges on clear and measurable objectives, stakeholder communication, robust governance, and pre-close integration planning,” he said.
Obisan urged organisations, both in the money and capital markets, to implement comprehensive cultural due diligence as part of the mergers and acquisitions processes.
He noted that planning during mergers and acquisitions should be robust, clear and communicated with all stakeholders.
“Comprehensive integration plan that incorporates cultural integration should be embedded in pre-merger plan.
“Communication should be central to pre and post-merger planning.
“Mergers and acquisitions planning should be appraised regularly to ensure conformity and minimise variance in the process,” he said.
Obisan suggested that post mergers and acquisitions report be presented to shareholders and included in post-transaction regulatory filings.(NAN)(www.nannews.ng)
Edited by Chinyere Joel-Nwokeoma
