🌟 Hello, Reader

Welcome to another edition of Double Klick, your bi-weekly briefing on M&A, finance, and AI innovation.

Let's read into this edition right away.

Warm regards,
Kapil Sukhija
Founder, KSMC

📊 Deal Strategy Deep Dive

Pre-Acquisition Value Creation Planning

The foundation of value creation in M&A begins before the deal closes: detailed 100-day plans developed before signing the purchase agreement. This pre-acquisition planning discipline enables faster integration execution and earlier realization of synergies.

The Challenge: Most buyers focus on deal execution and financing, leaving post-merger integration planning to the post-close period. This approach wastes the critical first 100 days when organizational momentum and change readiness are highest.

Real Deal Context: A SaaS company under private equity ownership needed to modernize its finance function and integrate multiple acquisitions. Rather than waiting until after closing, they embedded integration planning into their due diligence process.

The team worked with external consultants to develop a comprehensive plan covering two critical areas:

• IT and Financial Systems Integration: Rather than leaving multiple entities on disparate systems, the team deployed a single ERP platform before closing. This replaced error-prone Excel consolidation with automated financial reporting, giving leadership accurate data from day one

• HR & Payroll Alignment: The team integrated HR and payroll systems before closing, automating employee data flows and ensuring accurate paychecks from day one. Employees had clarity on benefits, reporting lines, and compensation immediately.

The implementation set up the client so that future acquisitions could be integrated easily, as the data model and processes were already in place. When they completed another acquisition shortly after, integration was seamless.

The difference comes down to Day One readiness. In successful integrations, employees receive offer letters, benefits information, and system access on day one. HR and IT know exactly what needs to happen.

Success Factors

• Assign integration leadership during due diligence, not after close

• Develop synergy capture plans with specific owners, timelines, and KPIs

• Secure management team commitment to integration milestones as part of deal negotiations

• Build integration costs and timing into the financial model with conservative assumptions

Action Steps: For your next acquisition, mandate that the 100-day plan be board-approved before signing the definitive agreement. If you had any areas that drove significant synergies on your last deal, we would love to know more.

🌍 Global Pulse

What’s Behind the Declining Dollar?

The US dollar is still the world’s main reserve currency, but it has become weaker and more volatile over the past year. That matters for anyone holding US assets from outside the US.

Since January 2025 it has fallen by about 10% against a broad basket of currencies, even though US growth and equity markets look strong. For foreign investors, this means a large part of the S&P 500’s 14% gain in dollar terms has been offset once returns are converted back into their home currency.

Why the dollar is under pressure?

Several factors are undermining confidence in the dollar, even though US growth and US equity markets still look strong.​​

• Narrowing interest‑rate differentials: The gap between US rates and other major economies has shrunk​

• Policy uncertainty: Aggressive tariffs, public pressure on the Federal Reserve, and relaxed fiscal policy have made investors more nervous about US assets​

• Gold and silver prices: Gold has surged to around $5,000, up by 75% in a year, while silver has seen sharp swings. Investors are using precious metals as a hedge against dollar and policy risk​

• Sell‑off episodes: There have been several moments when US bonds, equities and the dollar have fallen together—a pattern more typical of emerging markets​​

The nomination of Kevin Warsh as the next Fed chair gave brief relief, because of his earlier hawkish reputation. But his current call for rate cuts, even with current inflation (2.8%) still above target (2%) and further fiscal stimulus coming, could add to concerns that US policy will weaken the currency over time.

Even after its recent decline, the dollar is still overvalued on most measures. At the same time, foreign investors have limited alternatives as the dollar still dominates global trade invoicing, cross‑border banking, international debt and FX transactions.

Practical implications for Global Investors and Corporates

• Return translation: Foreign investors in US assets need to factor in FX risk explicitly. Strong local‑currency returns can be largely offset by dollar weakness, as we saw last year in euro terms​​

• Portfolio design: It is sensible to increase currency diversification and hedging, especially for long‑dated holdings in US equities and credit

• Funding and capital structure: Multinationals that borrow in dollars but report in other currencies should stress‑test their balance sheets for a scenario of further dollar depreciation and higher volatility​​

In short, the dollar is still the core funding and reserve currency, but it is becoming a riskier asset. Anyone managing capital across borders should treat US exposure as carrying higher political and currency risk than in the pre‑2020 period and adjust pricing, hedging and governance expectations accordingly.

Source: The Economist (February 7th-13th 2026 edition)

🤖 AI Tools Spotlight

PaperBrain: Understand Research Better 

PaperBrain is a free tool that transforms complex academic papers into clear, understandable explanations. Users can paste a research paper link or upload a PDF, and the AI breaks down the content into plain language summaries.

What The Tool Does?

• Explains technical jargon and complex concepts

• Provides section-by-section breakdowns

• Answers specific questions about the paper

• Highlights key findings and methodologies

Why It Matters?: Researchers consume hours skimming dense PDFs. PaperBrain cuts reading time drastically and makes findings accessible. It’s a productivity multiplier for academics, students, and professionals.

Explore the tool here.

💭 Dealmaker’s Quote

“By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.”

— Warren Buffett

🏢 About Us

KSMC is a Toronto-based boutique advisory firm founded by Big 4 alumni driven by an entrepreneurial and innovative vision. We provide comprehensive M&A Advisory Services, strategic CFO Consulting, and tailored Accounting Solutions. Our expertise and network spans the complete transaction lifecycle—from financial due diligence (QoE reviews) and business valuations to full sell-side mandates—serving middle-market clients across industries in Canada, U.S., UAE, India, Puerto Rico, and Botswana.

Know more and reach out to us here.

Disclaimer: This newsletter is provided for informational purposes only and does not constitute any form of advice. We do not have any sponsorship, affiliate, or commercial arrangements with any companies, tools, or services mentioned in this newsletter. All examples and case studies are based on publicly available information and are included for educational purposes only.