How to Prepare For an Acquisition
Begin building discussions with everyone in your industry that you think might be an eventual suitor including direct competitors as they may end up being your acquirer.
Make sure to call directly, or through an M & A agent, all these companies when you have decided you are ready to sell as interest will be more prevalent than you thought.
Create the single greatest company presentation you ever have with support elements including an Information Memorandum, PowerPoint, Sales Reports, etc. to provide an immediate sense of professionalism, preparedness and interest in selling the business.
Have all forms of corporate documentation, customer and reseller agreements and financial records in a concise and clear format that will allow for due diligence.
Be certain to make sure to have excellent presentations and as many face to face meetings as needed to build the value proposition as the due diligence seems to generally only devalue the deal vs. add value.
Prepare for your CEO and a few other team members to spend a significant time in corporate documentation collection, organizing and delivery and on process documentation creation.
Understand that this is the element of the process that will take the most time, energy and resources and will impact you simply being able to run your business, so work to have a team that can sell while this is taking place.
Make certain to have your wish, want, walk well defined amongst your management team prior to any discussions with your suitors and be the first to provide a number.
Discuss all of the factors of the various suitors that resonate with you as the eventual owner including corporate culture, legacy, professional opportunities, etc. as these are key.
Work diligently to make sure that both companies have a continual sense of urgency so that the deal stays in the forefront of everyone’s minds both in regards to due diligence and in regards to priority.