Generating a list of companies to acquire is easy. Simply call up an investment banker or visit a broker website like BizBuySell and you’ll find dozens of for-sale companies. The problem with this approach is although these owners are willing to sell, many of these companies may not be what you are looking for in […]
One of the first questions people ask me about M&A is, “Do you have a list of companies interesting in selling?” But this is the wrong question to be asking. By the nature of our role as third-party M&A advisors we do hear of for-sale companies, but from experience we have found using list is […]
“At our last strategic planning session, we realized we needed to do something else in addition to organic growth to meet our company’s five-year goals,” Dan* recently shared with me on the phone. Like many middle market companies, organic growth was stagnant, and the company’s progress had plateaued. Dan saw the gap between where the […]
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 […]
Most people know they will need a lawyer to finalize an acquisition, but many assume any lawyer will do. This is not true. While your attorney friend may be a top-notch patent lawyer, chances are he or she will not be equipped to offer specialized guidance in mergers and acquisitions. Think about it this way: […]
The purchase agreement is the legal document that officially seals the deal between buyer and seller. While each transaction is unique, most agreements contain the following sections: Sale and Purchase – This section includes the terms of the transaction such as the Buyer and Seller names, type of transaction, Stock, Asset, or Merger, and the […]
How much should a buyer pay for an acquisition? The short answer is, it depends. Because each company’s situation is unique there is no one rule of thumb for naming your price. Valuation is one of the critical components in establishing the financial worth of a company. In mergers and acquisitions one of the most commonly […]
Bringing two companies together through an acquisition is a massive undertaking that requires a significant amount of research and planning and dedicated resources to make it happen. It is the culmination of months (or perhaps years) of dedication and hard work. Unfortunately, far too often, companies struggle with integration and poor integration can detract or […]
One of the biggest mistakes a leader can make is to begin thinking about integration after a deal closes. By that time, it is already too late, and you will be left scrambling to piece together a haphazard plan. After the transaction closes employees from both buyer and seller will be working side-by-side and systems […]
“We would like to do an acquisition, but there are just no good companies to buy.” I’ve heard this sentiment repeatedly throughout the years from both owners of small, family businesses and executives of Fortune 500 firms alike. Identifying the right company to acquire is key to a successful transaction and the process takes significant […]
Negotiating for an acquisition is unlike most other negotiations where once the deal is finalized, you and the other party will part ways never to see each other again. With strategic acquisitions, often you will continue working with the seller once the transaction closes so protecting your relationship throughout the acquisition process, including during negotiations, […]
One of the secrets to negotiating a successful acquisition is to negotiate in parallel, not in series. Rather than negotiating each point one by one, put all the issues on the table and discuss them at the same time. While it may seem overwhelming to juggle multiple issues at once, this approach is a much […]
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 […]
It’s no secret that credit unions must embrace technology in order to succeed in today’s marketplace. Last year, $31 billion were invested in the fintech industry through M&A, venture financing, and private equity buyouts. In the last four years funding for fintech startups has increased at a compound annual growth rate of 41%, reaching $40 billion […]
When speaking with an owner for the first time about acquisition, knowing what to say (and what not to say) can be tricky. It is even more challenging in the case of “not-for-sale” acquisitions because you will have to change the owner’s mindset. How do you begin the conversation? When do you address price? And how […]
Although the new tax law has only been in effect since January 1, we are already seeing its impact on M&A activity. This year there have already been $325 billion in bids, the most activity since 2000. If you are thinking about pursuing M&A in 2018, here are four things to keep in mind: The […]
The new tax bill signed into law on December 22, 2017 brings about sweeping changes to many aspects of the US tax system, including mergers and acquisitions. Understanding the complex ramifications of the new tax law and how it will impact your company is critical. Join our new webinar with leading tax attorney Alexander Lee to […]
You’ve identified the perfect company to buy. The target has solid financials, a state-of-the-line facility, and a well-recognized brand name. Acquiring this company would double your revenue today. So, of course you should go for it. What could go wrong? Wait! Before you sign on the dotted line, make sure to conduct thorough market research. One […]
In the past, traditional tactics may have worked, but the industry is evolving, and credit unions must innovate to succeed. In a low-interest rate environment, one of the areas of concern is how to generate non-interest income. Forward-thinking credit unions are developing new strategies to generate non-interest income while adding value to members. Embracing the […]
Are you missing out on opportunities for growth? External growth, where you partner with another organization outside of your own, is often a neglected opportunity. External growth comes in many forms including mergers and acquisitions, joint ventures, strategic alliances, minority interest, and can be tailored to suit your needs. Here are three reasons why external growth […]
