How Face-to-Face Meetings Increase Buyer Acquisition Results

A corporate takeover happens when control of a corporation is transferred from one party to another. Corporate takeovers are classified as hostile or friendly based on whether or not the management of the firm being taken over is interested in participating. The entire procedure necessitates frequent meetings to discuss a variety of issues. Despite the fact that the world has long transitioned to the digital era, with virtual being the new normal, this UCLA Anderson Review article suggests that holding face-to-face meetings prior to buyer acquisition can result in better outcomes and transactions.

The article begins by stating that business takeovers are renowned for disappointing the buyer’s shareholders, resulting in, at best, lesser financial advantages than anticipated and, at worst, an unpleasant and humiliating conflict. The article, however, proposes that one simple act might be a viable remedy. According to the article, bidders that meet with target management often before a merger announcement get a better return after the news breaks. According to the article, targeted firms’ returns decrease as the number of pre-deal meetings with the buyer’s team increases, resulting in fewer competing bids after the merger announcement. According to the findings of the research, in public business acquisition, which is normally more profitable for sellers than buyers, acquirers achieved greater returns when they interact with target management on a regular basis. According to the article, frequent in-person meetings tend to foster warmer, less expensive partnerships for the acquirers by providing opportunities for social interactions between the parties. The article, on the other hand, contends that informal conversations, which are far less likely to occur during video conferencing, email exchanges, and other forms of remote communication, appear to build trust while dampening target management’s enthusiasm for attracting competing offers for buyer acquisition. Hence, the article suggests that regular visitors avoid costly counteroffers that would likely increase profits for target shareholders since they get to know the individuals well and build strong interpersonal ties with them.

Meetings held in person have a stronger effect than those held virtually. The preceding text explains why face-to-face interactions are more successful for buyer acquisition and why buyers should be aware of its advantages.