There is probably no greater truth in all business mergers, acquisitions, and sales – for buyers, sellers and M&A advisors alike – than “Time Kills All Deals.”
In my experience, no other factor has caused more potentially good deals to go bad than letting the sales process between two parties drag on and on until it eventually grinds to a halt.
While M&A advisors play a large role in leading/setting the pace of negotiations, due diligence and pre-closing preparations, all parties share responsibility for ensuring that they – and their advisors – come to the discussions fully prepared and poised to give this matter their full attention and priority.
Whether you’re a buyer or a seller, your M&A advisor should provide you with a checklist of the Things You’ll Need To Get Started, as well as a much more detailed checklist of Things You’ll Need to Complete Due Diligence.
Some tips to keep you out in front of the process:
- Prepare a Confidential Business Review, including all of the basic information on the company and update it regularly.
- Begin assembling the documents that will be requested in due diligence in advance, such as, tax returns, financial statements, corporate record books, leases, contracts, insurance polices, employment agreements, employee benefit plans, policy manuals, occupational licenses, business licenses, etc., and keep copies in a central location, or virtual data room so they can be easily copied/examined.
- Contact legal, financial, & accounting advisors to let them know what’s going on and that you’re counting on their full and timely support
- Stay focused on your primary goal which should be: Getting the deal done, and make certain that all parties keep their egos in check
If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a complimentary, confidential, consultation with us, have them contact me directly, and in strictest confidence, at 813.299.7862, or via e-mail at mertel@legacymandaadvisorsgroup.com
By: Mike Ertel, Transworld M&A Advisors