When is it advisable for a company to disclose potential benefits of an acquisition?

Disclosing potential benefits of an acquisition at the completion of the acquisition to manage shareholder expectations is a strategic approach. At this stage, the relevant stakeholders, including shareholders, are invested in the outcome of the acquisition and are often focused on understanding how it aligns with the company's future direction and profitability. By presenting the anticipated benefits at this point, the company can effectively set realistic expectations, clarify the strategic rationale behind the acquisition, and enhance shareholder confidence in the decision-making process.

Timing is crucial; presenting potential benefits too early, such as during negotiation or even before investor meetings, might lead to misinterpretations, inflated expectations, or concern if outcomes shift post-acquisition. After regulatory approval and before completion, the focus may be more on procedural logistics rather than strategic insights, thus, maximizing the communication of benefits post-acquisition is essential for fostering investor trust and aligning expectations with the company’s integrated vision moving forward.