M&A Challenges for Internal Finance Teams

Mergers and acquisitions (M&A) are always complex, but 2025 presents even greater internal finance challenges. With evolving regulations, geopolitical instability, technological advances, and economic uncertainties, internal finance teams must be more prepared than ever to navigate the pressures that come with M&A deals. 

Please note: The Consultancy Group is currently recruiting for two Finance M&A specialists to help businesses manage the challenges listed below. Please get in touch with me directly to explore these opportunities.

Based on conversations with candidates, clients, and insights from our Finance Market Insights Survey released this year, here’s a look at some of the key hurdles facing internal finance teams today.

Key Internal Finance M&A Challenges

1. Regulatory Scrutiny and Compliance

New regulations, particularly in the US and other major economies, are making M&A transactions more complex. With additional hours spent on filings and aggressive antitrust enforcement, internal finance teams are under increased pressure to ensure compliance with intricate reporting and transparency requirements. This is particularly evident in sectors like financial services and pharmaceuticals, which remain heavily regulated.

2. Geopolitical and Economic Uncertainty

Geopolitical instability, shifting trade policies, and economic fluctuations continue to pose risks to M&A deals. Trade tariffs and disruptions affect asset valuations, while inflationary concerns and interest rate fluctuations complicate capital deployment. These factors create a volatile environment where dealmakers must tread carefully.

3. Integration Risks

Post-acquisition integration is critical to the long-term success of any deal. Internal finance teams face the challenge of integrating not just financial systems but also employees and corporate cultures. This requires careful workforce planning to ensure a smooth transition and avoid losing valuable talent.

4. Technological Disruption

AI’s growing influence on the M&A space is reshaping strategies. Internal teams must assess AI readiness in target companies, which often requires detailed scenario planning. Technology integration can be another challenge, especially when business models are drastically different between the merging companies.

5. Financial Pressures

Private equity sponsors are feeling the pressure of monetising ageing portfolios and deploying capital efficiently. Meanwhile, mid-market deals continue to dominate the M&A landscape, driving competition for quality targets. Internal finance teams must develop effective strategies to balance these pressures while ensuring smooth financial execution.

6. Disputes and Poor Planning

Poor due diligence or rushed negotiations can lead to disputes and costly delays. Internal teams must devote significant time and effort to ensuring thorough due diligence processes are in place to avoid these financial pitfalls.

Strategies for Mitigation

While these challenges may seem daunting, there are strategies available to mitigate risks and ensure smoother M&A transactions:

• Enhanced Due Diligence: Rigorous planning and evaluation processes are crucial in identifying potential risks early on and preventing disputes later.
• Leveraging Technology: Adopting AI tools for target identification, asset valuation, and post-deal integration can streamline processes and reduce errors.
• Scenario Planning: Preparing for potential geopolitical shifts and regulatory changes helps internal finance teams stay ahead of the curve.
• Focus on Integration: Prioritising cultural alignment and workforce planning can ensure that businesses work together effectively after the deal is closed.

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