Mergers And Acquisitions Advice From An Expert
Added on May 27, 2018
Healthy financial conditions are creating an increase in M&A for middle market companies. Buying assets can be a key to growth for a great deal of organizations that fall between the small business sector and titans of industry. In fact, many decision-makers predict that the deals they make will equal over 25% of their overall growth. The following information will present you with five reasons why middle market companies should consider implementing a M&A strategy. However, the majority of middle market executives lack the experience required to ensure the M&A process is truly successful.
This can lead to costly and unpleasant surprises during negotiations. It can also lead to problems after the deal has closed. One of the main reasons that middle market companies struggle in this area is because they fail to hire external advisors. They often rely on internal management to conduct the research, negotiate terms, and ultimately close the deal. It is crucial to work with a professional M&A expert that specializes in such matters. They will be able to successfully implement a successful expansion strategy for your business and easily pay for themselves by adding value that exceeds their fees.
Set Goals That Will Help Your Business Grow
The first step of a M&A strategy is to set goals that will help your business grow. Begin the process by asking yourself the following questions:
Is your main objective to grow market share?
Are you trying to sell additional products or services?
Would you like to enter into new markets?
Do you want to eliminate a competitor?
The answers to these questions will form the basis of your M&A plan. They will provide you with a solid direction to move forward. If you cannot answer these questions with clear conviction it may not make sense to grow the business at this particular time.
Conduct A Systematic Assessment Of Your Financial Capability
Once you have set the goals for your business growth, the next step is to determine if you can achieve them from a financial standpoint. Prior to moving forward any further it is important to establish if your company can afford the investment and to sustain it for the long term. It is also important to be unequivocally aware of your capital structure. It needs to be able to handle the additional strain and responsibility of purchasing or merging with another business and comfortably handle the additional debt load.
Creating The Team
Once you have set your goals and determined that they are financially feasible, the next step is to build the M&A team. Most middle market companies have various departments such as accounting, finance, sales and marketing, and operations. Choose leaders from each division and add them to the team. Each member will be able to input their expertise in a manner that relates to specific areas during the due diligence process.
Adding a new business to an existing company can be a major distraction and requires a lot of resources. To ease this strain many companies hire experienced M&A advisors, which is where Navera Group can help. We have deep experience in Mergers, Acquisitions, and Divestitures. We have the expertise that is required to successfully provide support at all points in the process. Navera Group can seamlessly integrate a newly acquired company into an existing business, help you assume control of a stand-alone company, or divest an existing business or division. You can count on our team of experts to properly advise you every step of the way. If you have any questions, or would like more general information about our array of services, please contact us today. Phone: 617-356-7516; Email: Info@Naveragroup.com; Website: www.NaveraGroup.com