📌 Whether you're selling your business through an M&A or conducting one on someone's behalf, "you need the appropriately phased timeline." This can be found by reading this enlightening article: https://lnkd.in/e2tPzezz #TrustedAdvisors #DealTeam #BusinessCompliance #BusinessGrowth #StrategicExpansion #BusinessSuccess #EminaeNetwork #AcceleratedGrowth #M&A #MergerandAcquisition
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Founder at Dalma Capital | Founder at AIM Summit | Venture Partner at Draper Associates | Investment Banker | Asset Manager | Advisor | Lifelong Student
🔑 Path to Control M&A Deals: Unlocking Strategic Benefits 🔑 Path to control M&A deals offer unique advantages for both buyers and sellers. By allowing the buyer to gradually increase ownership, these deals provide growth capital, risk-sharing, and strategic synergies while enabling sellers to retain significant stakes in their businesses. In my latest article, I delve into: -The strategic benefits of path to control deals -Situations where these deals are particularly advantageous -Common structuring options to consider -The risks and pitfalls to watch out for, and the importance of effective structuring Whether you're a buyer or seller, understanding how to navigate these deals can significantly enhance the value and success of your M&A transactions. Read Full Article: https://lnkd.in/dh37WW4n #MandA #BusinessGrowth #StrategicPartnerships #PathToControl #DealStructuring
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Helping CFOs become fractional CFOs so they can gain control of their careers (and personal lives). Author of “So You Want to be a Fractional CFO”.
What’s it really like in today’s business environment for getting middle-market M & A deals done? At a peer group dinner the other night, one of the top M & A guys in NC Lee Lloyd shared a great characterization: Think of companies in terms of top 25%, next 25%, bottom 50%. Top 25% would be a good, well-run company that is growing and profitable. Deals in that top 25% are getting multiple aggressive bids and are relatively easy to close. Companies in the next 25% are getting fewer bids, not as aggressive, and are tougher to close – but they do eventually close. Companies in the bottom 50% often are getting no bids or low-ball bids, to the point where they may have to take themselves off the market. Can others confirm this general trend?
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We find you the right deal and get the deal done | Advised on $8 billion in M&A | Expertise in tech-driven and service business models | Corporate Development | Strategic Finance
When an acquirer takes too long to conduct diligence and close the deal, they risk the deal and frustrate the seller. Why? 🚫 Prolonged due diligence creates uncertainty, and strains the seller both financially and emotionally. 🚫The acquirer is conveying hesitancy to do the deal through excessive information demands, eroding sellers' trust in the process. 🚫The deal is at risk of collapsing due to exposure to market fluctuations or to competition jumping in when timelines are extended beyond the exclusivity period. Here’s a simple hypothesis-based approach that can help shorten this period and lead to quicker decision-making. As an acquirer, what other tips have you found helpful to get through due diligence quicker? As an M&A target, what did you wish acquirers did better to speed up diligence and close the deal? --- We help investors and companies to do smarter deals (buy-side and sell-side). Feel free to reach out if you have questions on this process or if you'd like help with M&A. #mergersandacquisitions
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3 Ways M&A Deals Can Destroy Value 1. Neglect of Intangible Assets Focusing solely on the integration of tangible assets while neglecting intangible ones like people and culture often leads to failed synergies and value erosion. 2. Inadequate Preparation for Value Creation Despite the intention, only 34% of acquirers prioritize value creation from Day One, highlighting a gap between planning and execution. 3. Poor Synergy Realization and Overpayment Challenges such as the inability to create intended synergies, paying excessive premiums, selecting inappropriate targets, and ineffective integration processes contribute significantly to the underperformance and value loss in M&A transactions. Anything else?
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DMS in Management | BSc in Economics and Finance | MSc in Finance at King Fahd University of petroleum and Mineral (KFUPM) | Green Finance Advocate for Climate change | Member of Africa Students Mentorship program |
Ph#2 The dynamics surrounding M&A M&A activities have gained attention due to the large sums of money involved and the impact on stakeholders. M&A is sometimes referred to as Mistakes and Apologies. Numerous companies experience M&A failure for a variety of reasons, some of which include: Ø Lack of explicit strategy (no clear strategic path) Ø Poor synergy (different parts of the team or company not working together) Ø Overpricing (Pay more for the target company due to inflated expectations or desire to gain competitive advantage) Stage #1 The identification and evaluation of a target firm. Ø Strategic drivers are identified as growth and market share, integrations (vertical or horizontal), diversification, and technology. Ø Applying the parental fit matrix, the target out there, and the perfect timing. Stage #2 The negotiation and announcement of the deal. Execution transaction phase Ø Planning Ø Negotiation Ø Due diligence Ø Conducting valuations (DFC, EBITDA, and Comparable KEY valuation elements) Ø Risk assessment (eminent risks, management, market dynamics, competitive price biddings, technology, politics, etc.) The deal team is set to assess the valuation, organization integration plans, operational integration plan, Stage #3 The integration of the target company with the company being acquired. As a result, it could take several years, and the purchasing firm's profits are frequently unpredictable. How can organizations navigate the dynamics of the M&A process is still a mystery?
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Will you be prepared when someone knocks at your door to purchase your company? Things are heating up in the #M&A space. No matter where you are in the buying or selling process, we're here to help you map your tech journey, reduce risk and understand the gaps you need to fill to complete the transaction and maximize your value. #mergersandacquisitions #buyside #sellside #postmergerimplementation #technicalDD 1Rivet Ramon Suazo Mickey Matthews Association for Corporate Growth (ACG) Marybeth Emson, CFP®, CIMA® Marc Silverman
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Digitization opens doors to growth and expansion. But it also brings unique challenges. Business owners who assemble a transaction team that understands and embraces these technologies can gain a competitive advantage in the M&A space. Principal and National Director of HBK Transaction Advisory Services Keith A Veres, CPA, CGMA, CEPA explains. #smallbusiness #digitaltransformation
Where Digital Transformation and Cross-Border M&A Collide
https://hbkcpa.com
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