Companies buy and sell all or part of other businesses on a pretty regular basis, but getting through the sales process isn’t always easy to do. There are plenty of times throughout the life of the transaction that things can easily go wrong, from the very initial discussion to sitting at the closing table itself. Although there are a lot of different reasons that the transaction may fall apart unexpectedly, there are some deal killers that pop up more often than others. Here are four ways a business sale can get derailed:Read More
Due diligence is an inevitable part of the process when two or more companies are merging or one company intends to acquire another one. The investigation essentially involves a ton of information gathering and analysis, as those involved in the deal want to ensure that they completely understand where the other party stands with respect to a number of important matters. Even though there is a basic structure and purpose, not all due diligence investigations will proceed in the same manner or address the same issues. In fact, there has been a growing trend toward the inclusion of both hard due diligence and soft due diligence. For those not as familiar with this newer focus, here is a rundown on the two types:Read More
Businesses of all sizes and across all sectors are no doubt familiar with the increasing ubiquity of mergers and acquisitions (M&A). Companies embark on M&A deals for various financial and strategic reasons, but they tend to be rather complex transactions so careful consideration and planning must take place before jumping in head first. One of the key things that a company must understand when determining whether to merge with another company, acquire one, or perhaps be acquired itself is the type of entity or people that will be involved in facilitating the deal. There are different ways to structure an M&A deal and how it is done often impacts the way in which things will play out after the fact. Here are some of the most common players in the M&A space:Read More
Creating a brand is an incredibly important facet of building a successful business. The brand is so much more than a name, logo, and some colors. A truly successful brand incorporates the business’s purpose, goals, people, and values. Brands often convey a specific message, and consumers begin to associate certain characteristics and attributes with those brands. Although it is clearly difficult to precisely define a company’s brand and quantify its value, building and protecting a brand must occur to really connect with the customer base. Companies that manage to tout a successful brand are often the targets for mergers and acquisitions (M&A) because of the opportunities that they clearly present. Here is the role a brand can play in M&A success:
Companies of all sizes and in all sectors are almost always in need of capital infusions, at least at some point in their existence. These days, there are several interesting ways for companies to raise the funds they need. Private equity can be particularly helpful for companies looking to grow substantially, tap entirely new markets, acquire another entity, exit for a handsome sum in the future, and/or simply use capital to expedite any number of other, well-planned goals. But, obtaining an investment from a private equity firm is usually a lot harder than obtaining it from other sources. Companies hoping to leverage this potential avenue have to be at the top of their game. Here are 5 tips to attract private equity:Read More
During an M&A negotiation, both parties will likely experience a range of emotions. The way you control those emotions have a profound impact on the progress and outcome of the deal. Hold-ups might occur, term renegotiations might cause unwanted stress and fatigue, or your valuation expectations might turn out to be unrealistic
To gain a greater sense of how you can control emotions during an M&A negotiation, keep the following techniques in mind.Read More
One of the most rewarding aspects of starting and growing a business is being able to sell it for a handsome profit at some point down the line. It is a true mark of success when the founders of a business manage to sell it off for millions of dollars and can retire from working altogether if they so desire. Of course, getting to that point is far from easy. In most cases, it takes years of blood, sweat, and tears, and even the most diligent workers may not ever reach this lofty goal. However, there are certain measures business leaders can take to help set themselves up for success. Here are some important steps to take to ensure a solid exit plan:Read More
When in search of a virtual data room for your M&A deal management, what are you looking for in a provider? A secure online meeting place for all parties involved in the deal? Full control during online due diligence processes? A secure online data repository to simplify the cooperation between all parties?
The virtual data room has evolved to become a complete tool to facilitate the entire deal course.
Successful deal closures require an understanding of many concurrent deals and events within the firm. Often times, this level of awareness is difficult, especially as the quantity and level of complexity involved in the deals increases. When choosing a software to adopt, it is crucial to ensure that your virtual data room offers an activity alert system. These systems provide a series of activity alerts to ensure that users can access newly added documents quickly and with ease.Read More
If you're a business owner who's been approached with an unsolicited acquisition offer, you might be feeling a mix of emotions—relief and excitement that your hard work has finally paid off, disappointment at the low asking price, or even fantasies about retirement to a tropical island.
Regardless of how good the offer seems, there are still questions to ask and procedures to follow before you sign on the dotted line. Follow the tips below in order to make the negotiation process as straightforward and advantageous as possible.Read More