To most, the phrase ‘Mergers & Acquisitions’ conjures up high-stakes deals, sharp suits and the fast-talking charisma of Danny Crane from Boston Legal. But while Hollywood makes it seem like the realm of billion-dollar corporates and global conglomerates, M&As are quietly playing out every day – in boardrooms, on golf courses, coffee shops, at your daughters’ school auction and even over casual weekend braais.
“You don’t need to be the CEO of a listed company to be involved in a merger or acquisition,” says PJ Veldhuizen, M&A expert and Managing Director at commercial law firm Gillan & Veldhuizen Inc. Buying a house, selling shares in your business, entering a joint venture, bidding on a piece of art – these are all versions of M&A activity. “It’s not so much about the size; it’s more about structure, risk and intention and getting the right advice,” adds Veldhuizen.
Going back to the boardroom. One of the most common types of mergers is the strategic alignment of two businesses in the same industry, often born out of necessity. “Picture two mid-sized businesses, both battling tight margins and overhead-heavy operations. By merging, they can consolidate resources, minimise overheads by reducing rental and salary duplication, scale more efficiently,” says Veldhuizen.
“We see these deals every month. M&A is increasingly being used as a practical tool by SMEs to stay lean and competitive.”
Contrary to the nail-biting showdowns on TV, not all mergers are hostile takeovers. In fact, many are considered, collaborative and downright friendly. “When businesses with complementary strengths and aligned goals decide to merge, it’s often about creating a stronger entity, not a power struggle,” explains Veldhuizen.
“These mutual mergers can be smoother and more productive in the long term. But they still require planning, structure and a great deal of legal foresight.”
A key mistake Veldhuizen sees time and again? Rushing. “There is this myth that if you don’t act immediately, you’ll miss out. That’s how scams happen. That’s how poor decisions get made.
Good M&A practice is never reactive – it is calculated. Think about what comes next. Apply second-order thinking: And then what? What are the tax consequences? The risks? Could you structure it better – through a trust, a company, a partnership?”
He continues, “Warren Buffett says, ‘It’s not about doing everything right; it’s about avoiding the big mistakes.’ Whether you’re buying a company, a vehicle, a holiday home or even an out-of-reach piece of art – if there’s an agreement, a risk and money involved, then you’re in M&A territory.
“This is where you need someone to help you navigate it – guide, challenge, ask the hard questions and help you plan for the ‘and then what?’- so that your deal, no matter the size, is set up for success – and that investment your mate told you to look into while munching on his boerie roll, pays off,” says Veldhuizen.