The M&A process can be long and complex. Selling a company requires meticulous planning, experienced professionals, and an appreciation of the deal processes involved in negotiations.
Companies that have not been involved in previous M&A transactions commonly make mistakes that result in under-pricing, unfavourable terms or a failure to complete – which could have otherwise been avoided. Below describes an essential element that private companies must have when trying to sell their business in order to avoid such mistakes.
Hire a trustworthy investment bank experienced in M&A.
An experienced M&A advisor can bring inimitable value when trying to achieve a highly successful deal by:
- Assisting in developing a target list of potential buyers;
- Sourcing, contacting and coordinating meetings with potential buyers. A good financial advisor will have strong relationships with senior executives of several prospective buyers, and this will provide the starting point to a successful deal;
- Preparing the selling company for presentations to potential buyers. This includes creating a confidential information memorandum (IM) which covers business information including financials, market comparable valuations and other vital information;
- Assisting with the accurate and complete furnishing of a sophisticated online data room. They will also anticipate and help support responses to buyer due diligence requests;
- Assisting with negotiations on price and deal terms as well as developing and executing an optimal sale process.
- Project managing all aspects of the M&A process through to completion.
Management Advisors Pty Ltd is a highly sought after independent financial services firm. Their team has extensive experience in initiating, sourcing and negotiating M&A transactions to completion.
