Mergers for the non-professional, an introduction

Business

  • Author Todd Walker
  • Published August 15, 2011
  • Word count 512

Mergers and acquisitions are a significant part of the US economy. The economy is driven by all kinds of mergers deals, from the very large companies that make the news buying each other, to the smaller deals that affect main street and which never make the news. Small companies can benefit from this dynamic by understanding mergers, and understanding how to sell to a company that will continue to grow and expand.

For years, people have turned to the professionals of Merger Advisors Network to sell or buy businesses. Likely the most important task is making sure you have the right people on your side: pick the right team, and good things happen. Get it done right the first time: let someone else help you find the right person for you.

The best people can clearly explain many parts of a deal. It's always smart to educate yourself, even if you don't do the deal.

The importance of business planning. Few deals that start every finish: most hit roadblocks or die out. To reach a goal you need a plan, and if you don't even have goals, well . . .

Getting ready for the sale. These days, a little talking goes a long way to reaching the wrong people. Are you ready to talk to interested parties who will have a series of questions and ask for critical data. What else should you consider when thinking about selling?

Valuations. Every seller wonders what his or her business is worth to the right buyer. Are there reliable ways to predict the value I'll receive? How will a buyer think about my business? What is unique about my business?

Transaction documentation and details. Although price is important, it isn't everything. The real deal is often the what, and not the how much. What's the best structure of a seller?

State and Federal taxes. Each deal creates a host of tax consequences that the parties must navigate, and understanding is the key to good planning.

The sequence of events. Making the right steps toward the end goal requires familiarity with many stages of a deal.

Geographical considerations. From California to New York to Illinois to Georgia, each state is different. Each place has its own rules and customs. Understanding these nuances can often maximize deal value

Industry considerations. Each industry has its own dynamics. Each provides different trends or dynamics that affect prices.

Catch all. There is always more to consider - whether you are public or private, highly regulated or not, each situation is unique and requires a thoughtful approach.

This is just the beginning. Doing your deal is not the same thing as understanding your deal. There are many competent professionals who can help. For each unique deal, there is often a specific professional who can best help. Knowing more helps you realize who can best help you reach your goals. To really find the best advisor, you can use free services to match you to that advisor. The right professional will bring far more to your deal value than he or she will cost.

Merger Advisors Network can help you if you are selling a business or want to learn how to "sell my business."

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