“10 Keys To Mergers & Acquisitions”
1) Build A Non-Founder/Individual Centric Business – do not build a business that has too much value in its founder(s) or in a single individual as it can devalue the business and the deal.
2) Create The Right/Open Culture – prepare your team and your culture for M & A so that they are prepared and so that it is less of a distraction to them or the company as a whole.
3) Get Your Business Practices Together – have the systems and processes in place that are the expected standards to complete a deal including financials, customer data and general records.
4) Find The Right M & A Team – set up the right team for the M & A including an M & A board of advisors, counsel, accounting and deal making. Build a team that can raise the value of the deal vs. diminish it.
5) Build The Business During The M & A Process – continue to build and sell product(s) and to garner customers while strategizing to build a system to complete a deal without jeopardizing your business.
6) Take Inventory Of Personal & Professional Goals – get an understanding of your goals around the type of deal you would be willing to complete including your needs around financial returns (cash/stock) and time carry-overs.
7) Understand The Difference Between Mergers, Acquisitions, Strategic Investments & Roll Ups – learn how each of these opportunities play out and stay current with your industry’s trends so you can be prepared for each of them.
8) Know Your Value Drivers – get a sense of the inherent value in your company and more importantly what is the value to your suitor(s) including customers, vendors, revenues, brand, products, earnings and channel partnerships.
9) Know When To Walk Away – Have a good sense of the timing and of the environment you are in with a deal and learn when/how to watch for preemptive bids and no shop scenarios and when the deal is no longer viable.
10) Understand The Motivation Of Your Shareholders – Get a real sense of what your shareholders want/need and keep them informed of your plans and opportunities currently on the table.