Global mergers and acquisitions
Confidently navigate M&A risk management
Global merger and acquisition (M&A) activity and deal volume has remained strong, despite geopolitical uncertainty, regulatory scrutiny, and increased foreign exchange volatility. The market is seeing fewer but larger deals, which can increase the complexity of the underlying transactions and risk profiles. As the largest, independent financial risk management advisory and technology firm, executing over $4 billion in notional every day as well as thousands of ISDAs and regulatory agreements annually, Chatham offers the unmatched perspective that comes from managing the highest volumes and largest breadth of engagements in our field. By leveraging this insight, your organization can confidently navigate the turbulent waters of M&A risk management and achieve key objectives, including:
- Reducing the impact of currency fluctuation on the acquisition price
- Evaluating the risk profile of the combined organizations
- Optimizing the capital structure given the consolidated currency and debt profile
- Integrating operational, technology, and regulatory processes across risk management programs
- Aligning hedge accounting policies, procedures, and documentation
Treasurer, Fortune 100 company
Chatham was an invaluable partner during our cross-border acquisition, resulting in an operational hedging program that leverages the best of both organizations.
With Chatham, you can access all the strategic, operational, and technological capabilities required to effectively manage financial risk throughout an M&A transaction, including:
Pre-closing strategy and analysis
- Enterprise and equity value analysis
- Capital structure optimization
- Combined exposure profile assessment and impacts on pricing
- Acquisition hedge structure and execution strategy
- Due diligence on risk management objectives, processes, and compliance
- ISDA negotiation, advisory, and analysis
- Compliance support, including analysis, due diligence, reporting, and technology
Combined operational risk management
- Alignment of corporate objectives and risk mitigation priorities
- Program design and implementation
- Evaluation of risk implications due to changes to organizational structure
- Policy coordination and internal protocols
- Hedge execution and daily operations
- Accounting advisory for acquisition hedge transactions
- Disposition of existing hedges and OCI reclassification
- Alignment of policies, procedures, and documentation
- Ongoing hedge accounting treatment for operational hedging
- Technical assistance with audit questions on designation and valuation methodologies
ChathamDirect financial risk management platform
- Comprehensive technology platform for managing FX, interest rate, and commodity risk
- Consolidated data repository across entities
- Integration of hedge execution and daily operations
- Ongoing valuations and visibility into policy compliance
- Management reporting dashboards for all aspects of a program
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Navigating M&A risk?
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Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. CHA is registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor and is a member of the National Futures Association (NFA); however, neither the CFTC nor the NFA have passed upon the merits of participating in any advisory services offered by CHA. For further information, please visit chathamfinancial.com/legal-notices.22-0215
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