The M&A landscape is beginning to bounce back following a slow period and investors are keen to put the record amount of dry powder sitting in investment accounts to work. It’s an exciting time for M&A with confidence growing across the board; that’s why it’s more important than ever to make sure that you have access to the right people for the deal, including interim leaders.

Having worked in M&A interim management for over 15 years, I know that M&A transactions are complex, and each situation is as unique as the businesses involved. However, there are three constant pillars at work in every transaction – the need for control, quality, and value. Placing an experienced interim to steer an organisation through can help ensure that the business maximises control, quality, and value throughout its journey.

In this article, Steve Clarke, Partner within our Finance practice at Eton Bridge Partners, discusses the role of interim management in mergers and acquisitions and how the right interim can help your business succeed throughout your transaction and beyond.

The current M&A landscape

High interest rates and geopolitical uncertainty due to elections in the UK, Europe and the USA created an environment of instability, leading to a reduction in the number of M&A transactions in the last 18 – 24 months.

However, with interest rates having levelled out to a degree, albeit at a high rate, and the elections now done, the landscape is far more stable and we’re seeing an upturn in the number of deals planned.

In addition, private equity hold times are at a record high, with many portfolio companies coming to the end of their investment lifecycle, with some instances of that lifecycle having already been extended. So, going into 2025 we will see a shift towards the sale of assets that have been sitting in fixed-term funds, as well as the purchase of new assets both at fund level and as bolt-ons.

With PE funds now more active in deploying capital and the general landscape much more conducive to M&A activity, we expect to see listed businesses start to sell non-core assets. And with a generally flat economy, both listed and PE backed businesses will see M&A as an opportunity to instigate market-beating growth.

However, the cost of debt is still high, and with the impact of the employers NI impacting inflation, this is expected to slow the Bank of England’s hand in dropping the base rate. With ongoing global instability there are still significant challenges ahead.

Four benefits of interim management in supporting mergers and acquisitions

Despite the uptick in the market, M&A margins are much tighter than they were three or four years ago. This means that trying to cut costs by not having a specialist at the helm during a deal is a bad idea. When there are finer margins, you need even more control, better quality, and better value in every area from the original negotiations through to post-merger integration.

When a private equity firm exits a business for instance, the right interim can help plan and navigate the process while taking pressure off the existing management team. The C-suite can continue their focus on running core operations and maintain performance rather than getting bogged down in M&A details.

Interims can also support the development of the equity story, crafting a compelling narrative about why the business represents an attractive investment for potential buyers. This helps the business withstand due diligence scrutiny by producing highly in-depth financial models. Together these elements make the company a much more presentable asset for potential buyers.

In this section, I’ll outline four specific benefits of hiring an interim during M&A.

1. Specific experience in working with mergers and acquisitions

When working with an interim manager, you can expect candidates with at least 10 years of M&A transaction experience and who have been involved in at least 20 M&A processes throughout their career.

This level of experience is invaluable in practice. We recently worked with a FTSE 250 engineering and manufacturing company, who were exploring potential acquisitions across Europe and America. The company entered into exclusivity agreements and found themselves in negotiations with more businesses than they anticipated.

We brought in a senior M&A director with significant sector and FTSE experience to manage a particularly complex acquisition of an American business valued at over $50 million. The interim M&A director managed the entire process through to post-merger integration, including initial due diligence, negotiations, and full diligence across legal, commercial operations, and marketing. They handled the deal execution, including commercial terms and contracts.

After the deal was signed, the director coordinated teams from the acquiring and acquired businesses to ensure seamless post-merger integration. The experience brought to the M&A process by the interim director undoubtedly led to the success of the deals.

2. Experts in post-merger integration

A deal doesn’t end when the contracts are signed. Far from it. Many potential pitfalls can result in lost value, and lost resources in the aftermath of a transaction.

We work with interim experts in post-merger integration that will lead the way in ensuring proper internal communications, aligning systems, and addressing branding decisions (such as whether to merge or maintain separate identities).

Integration planning must begin on day one of the deal thesis, and a well-sourced interim will understand the value of developing and following a comprehensive 100-day post-acquisition plan. They will guide the transformation and manage integration, maximising the value gained from the acquired business.

3. Closing deals with speed and precision

An experienced interim executive brings invaluable expertise in navigating complex transactions, meaning they can identify critical paths and potential roadblocks before they become issues.

We recently placed an interim specialist in a private equity-backed setting where a tech business was looking to sell a majority stake to a second investor. They had initially received investment from a lower mid-market private equity fund and wanted to sell that stake to a larger fund that invests in bigger businesses.

The interim needed to manage and build the equity story, prepare the business operationally and commercially for due diligence, and handle relationships with numerous advisors, bankers, and potential buyers.

By managing the entire process through to completion, the interim allowed the CFO and CEO to focus on running the business. The investment proved highly successful, and the company is now thriving under its new private equity owners.

Ultimately, an experienced interim manager helps maintain momentum and drives deals to completion more quickly and efficiently.

4. Success through focussed leadership

An interim executive provides crucial objectivity during M&A processes by maintaining a single focus on deal execution, unlike internal leaders who must juggle multiple business responsibilities.

Having a single focus means that decisions are evaluated solely based on business merit, avoiding the influence of internal politics or historical relationships.

Familiarity with share purchase agreements helps interims anticipate and prevent common obstacles that could derail the deal-making process even in complex situations.

The interim’s presence can also help to minimise workplace friction during what can be a sensitive period. As a neutral third party, they can address stakeholder concerns professionally and impartially, while guiding internal communications to maintain stability. Their sole focus on the transaction means they can dedicate complete attention to ensuring the best possible outcome, without being distracted by day-to-day operational concerns that typically occupy permanent executives.

Addressing the typical concerns which come with using interim executives during the M&A process

Clients who are considering using an interim for the first time often have the following concerns:

Knowledge transfer: how will we cope after the interim has completed their placement?

People often worry that an interim manager will complete the M&A transaction and leave, taking their expertise with them. The solution is to ensure knowledge transfer is properly addressed throughout the process and maintain a strong relationship with your interim after the placement ends. They should be available for consultations three months, six months, or even two years after the transaction. This is standard practice, in fact, M&A interim managers will instigate comprehensive knowledge transfer as a priority and remain available for follow-up work or discussions for as long as needed.

Are the additional costs of hiring an interim worth it?

Some might think that not hiring an interim manager will save money. However, the savings you’ll achieve on advisory fees – whether in finance, legal, or consulting—will far exceed the cost of an interim manager. For perspective, an interim manager typically costs less than one-third of an equivalent advisor’s fee.

How can we ensure the quality of an interim executive?

Another potential concern is the quality of interim advisors. In practice, you have more control over quality with a well-sourced interim because you can request certain standards when you work with your interim provider. At Eton Bridge Partners, all the interims in our network have proven experience and have often worked with us before, so we know their worth and what they can do. We also conduct in-depth reference checks to ensure that each interim not only meets, but exceeds the rigorous expectations of our clients, bringing a track record of successful outcomes.

Mergers & Acquisitions: Find the right interim leader with Eton Bridge Partners

Having the right team can mean the difference between success and failure of your M&A transactions. Eton Bridge Partners is consistently recognised as the UK’s leading interim management firm, ranking in the top three for specialist corporate leadership by the Institute of Interim Management for seven consecutive years.

Our track record in M&A has enabled us to build a network of expertise to support every aspect of your deal. Whether you need overall transaction leadership or specialised expertise in finance, systems integration, HR, marketing, procurement, or operations we have the right people ready to step in.

With a network of over 500 seasoned M&A professionals, we can rapidly deploy exactly the expertise you need, when you need it. We’ve spent 15 years building relationships, understanding the market, and knowing exactly who to call when specific challenges arise. When you work with Eton Bridge Partners, you’re not just getting interim managers; you’re getting access to some of the UK’s most experienced M&A practitioners, backed by a firm that has consistently proven itself as the market leader.

People often ask me why M&A deals can’t move faster. The truth is, they shouldn’t be rushed. We’re dealing with people’s livelihoods and investments that have often taken decades to build. Whether it’s the employees whose careers hang in the balance, or the investors who’ve entrusted their hard-earned savings to private equity funds, there’s too much at stake to cut corners.

The key to making this process work isn’t about making it faster, it’s about getting it right, which you can only do when you have experienced professionals who know what they’re doing. And that’s exactly what we strive to deliver: the expertise to handle the complexity while keeping things moving at the right pace.

If you’d like to find out more about how Eton Bridge Partners can provide the expertise you need to succeed in your next transaction, get in touch we’d love to hear from you.