Preparation and Execution for M&A Success
A Common Theme for Our Times: Increasing Importance of M&A Preparation
The M&A markets for exit, merger or recapitalization can be very challenging. The widely known but unspoken reality is that some companies that pursue an exit or merger do not transact. Too often the reason for this is a lack of prior planning and preparation. The most common factors behind “dead” deals is lack of adequate preparation leading to “surprises” in diligence. Buyers and investors are appropriately careful, discerning and expect areas such as clean, honest and accurate financials, along with the management teams, employees, assets, regulatory compliance and operating systems to be proven and demonstrable. Simply stated, in business as in life, it is to your advantage to be well prepared.
The answers to two of the most common, and vitally important, questions in mergers and acquisitions are a roadmap to a successful transaction.
A merger, recapitalization or other equity-based transaction can be transformative. For the business owners, an M&A event is the largest financial transaction they will ever experience in their lifetime. This is why you need to not only know what questions to ask but also how the answers apply to your specific business. It is also critical to understand the many pathways and hurdles that are possible for your specific circumstances and goals in a transaction.
- Question 1: How much is my business worth?
- Question 2: What steps must I follow to successfully close on a transaction?
While every business, and each business owner/stakeholder is unique, there many common points and unique differences that must be addressed to ....
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