Consuelo, Regine C.

 M&A is an important strategic option that companies can leverage to make necessary
leaps in the competitive marketplace

M&A is a mergers, acquisitions, joint ventures or a divestitures. It is facilitated by

exceptionally low costs of financing and abundant liquidity, which are the result of unorthodox
measures central banks have taken to revive economic growth. So, the M&A has become an
important instrument for growth because of the organic revenue growth of many companies is
in the low single digits.

M&A is very risky and many deaks fail, sometimes bringing companies to the brink of failure
but it can help also in obtaining a higher marjet share abd a broader customer base, and gain
access to new technology, products abd distribution channels. Mostly of tge companies mergers
and acquisutuons are irregular events for which they lack capabilities and processes.

M&A is not only about acquisitions, but also about divestitures. Divestitures should not only
be considered for poorly performing activities, but also when new owners can add more value
to a business. Typically a lot of emotion has to be overcome before a divestment decisions can
be made because companies have natural tendenct to pursye growth, even when growth is not
creating value. It is therefore crucial that a review of the business portfolio to identify
candidates for divestitures is performed in a structured and timely fashion. Preparing for
divestitures can take from several months up to one or even two years.