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At this year’s Nordic M&A and Private Equity Forum, we caught up with Crispin Vicars from Nokia to get his take on some key M&A questions
Selecting an advisor is a process that almost every M&A oriented company will have to go through, and each company naturally develops their own process for selection. When it comes to financial advisors, Crispin noted that Nokia chooses to do accounting in house for smaller acquisitions. The larger deals are the ones where they will actively seek financial advice. “We will bring in an accountant firm for tax or accounting due diligence...,” he said. “… and that decision ultimately sits with our CFO and our leadership team.” Crispin also mentions that there are several factors which go into selecting their advisors, such as their expertise in the sector and their relationship with Nokia. As for their legal advisors, that decision is handled by their General Counsel, which also maintains a panel of pre-approved firms for M&A.
Secondly, we asked about the frequency with which Nokia pursues acquisitions and what statistics Crispin was able to share. In 2016, Nokia developed a list of about 300 potential acquisition targets. Of those 300, 25% get evaluated. 10 firms from the pool of 300 will move onto the second round of strategic assessment and decision-making. Of those 10, Nokia closed 5 deals. When handling newly inked deals, Crispin alluded to an “institutional knowledge” that Nokia has cultivated when handling a newly acquired company, and the importance of properly integrating them into the company. To aid with this, Nokia often brings on an integration manager, who specialises in making the transition smooth and productive for Nokia.
Crispin was speaking on the effective strategies for deal execution panel, watch the full discussion here.