Many leaders shy away from international expansion because they are afraid of the risks associated with it, but going global can be an excellent opportunity for reaching new markets and achieving your company’s growth goals. If you’re considering new growth options, here are three steps to minimize these liabilities when expanding internationally. 1. Find the […]

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If you look at a due diligence check list, you’ll commonly find 3-5-year financial statements, employment agreements, leasing contracts, and past litigation on the list. While reviewing these documents is important, they only reveal part of the picture because they focus heavily on past performance. Thorough due diligence involves both looking backward and forward and […]

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Reviewing a company’s past performance is only worthwhile when you apply your findings to future results post-acquisition. With this future perspective in mind, here are five questions to help you consider the impact acquiring a prospect may have on your company moving forward. What do the past 3-5-year financials tell you about the company’s growth […]

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In October 2017, four months after closing its $4.48 billion acquisition of Yahoo, Verizon announced that all three billion Yahoo accounts had been hacked in 2013. On October 23, 2018, Yahoo agreed to pay $50 million in damages to affected users. As the acquirer, Verizon will shoulder half the costs. Obviously, most of us would […]

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After signing a letter of intent (LOI), there are still many steps to take before closing a transaction including due diligence, final valuation, negotiations, papering legal documents, and integration planning.   With many complex, specialized steps to move the deal forward, this period can be challenging to navigate, but also presents opportunities for strategic acquirers who have […]

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Buyers often think using a due diligence checklist is the best way to ensure thorough due diligence on the target, but this may not always be the case. A generic list developed by outside “experts” may focus on non-essential issues while glossing over items that are critical to your deal. This is because each acquisition […]

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Getting both buyer and seller to agree to and sign a letter of intent (LOI) is a critical milestone in the M&A process. The LOI provides the basic guidelines for the deal moving forward: It outlines major issues like fundamental terms, price, agreement on major business points, and sets forth buyer exclusivity for a period […]

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In merging two distinct companies there are many legal technicalities that need to be reviewed to finalize the deal, so it’s critical to hire an attorney to help cover your bases. Lawyers typically assist in drafting legal documents like the letter of intent and acquisition agreement, and even employment agreements to keep key employees at […]

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Failure to plan and execute integration properly can undo months or even years of hard work. More than 30% of companies fail to achieve their revenue goals after a deal closes. This is unfortunate, but also not too surprising. For some reason, perhaps because it comes at the end of the M&A process, leaders tend […]

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Due diligence is more than just hammering away at a company to find out everything that might be wrong with it. It is about taking a focused approach throughout the acquisition process to uncover key points that will help you methodically evaluate a company to make sure it is the right fit. Traditionally, due diligence […]

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We generally recommend taking between 30 and 60 days to complete due diligence. We find this is enough time to complete a thorough evaluation of the business without letting the process drag on. Due diligence will include onsite visits with your internal team and your external team of lawyers, accountants, and your third party M&A […]

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Acquisitions can transform your company’s growth trajectory and set you up for long-term success. You may choose to use acquisition because your organic growth has stalled and hiring additional sales people or investing in R&D will not not help you achieve your business goals. Acquisition is fast and opens the door to many new growth options by bringing […]

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While it’s an important milestone, a signed letter of intent does not guarantee a successful acquisition. Just ask Pfizer who withdrew its $150 billion bid to acquire Allergan after signing a LOI. Pfizer ended up paying a breakup fee of $150 million. After the LOI is signed, you still have a few major steps to take before the acquisition […]

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One of the challenges of due diligence is that you often do not have access to all the data. Of course you want to know every last detail about the acquisition prospect so you can make the best decision. Unfortunately, the real world is never perfect. The prospect may have an incomplete or no record of the […]

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Yahoo says the private information of at least 500 million has been compromised due to a cyber-attack in 2014. In the biggest security breach to date, hackers gained access to sensitive information including names, emails addresses, telephone numbers, birth dates, passwords, and security questions. The security breach has ramifications not just for Yahoo and its […]

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During due diligence most companies will present you with their formal documents including HR manuals, procedures, financials and organizational charts. It’s not enough to rely on these documents alone; if you want to know what a company is really like, you’ll have to dig a bit deeper. One way to go beyond the surface is […]

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You’ve developed your strategy, identified the right markets, negotiated with the owner and papered the deal. If you think once you sign on the dotted line your job is done, you are mistaken. The M&A process doesn’t end when the deal closes. M&A is really a journey “from beginning to beginning” where the consummation of […]

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During formal due diligence, which typically begins after signing the letter of intent, you gain access to in-depth information and begin taking a closer look at the acquisition target. Traditionally the primary purpose of this stage of the M&A is to identify significant risks that could impact the terms of the deal or put it […]

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Culture is an important part of an organization, but it can be difficult to define. Unlike other areas, such as finance and operations, which have concrete metrics like revenue, EBITDA, and number of employees, quantitatively measuring culture can be challenging. Leaders often rely on their “gut” to understand another company’s culture, but this leaves an […]

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Due diligence is an important step in the acquisition process that comes prior to closing a deal. Most people think about due diligence from a risk assessment standpoint or as a checklist of items that must be completed in order to move the deal forward. Traditional reasons for undertaking due diligence include evaluating strengths and […]

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