Sales, Mergers and Acquisitions
Buying and Selling Businesses
- Explore your options when it comes to selling, merging, and acquiring businesses
- How to find an M & A advisor
- How to prepare your business for integration after a deal is finished
Businesses are sold, merged, and acquired every single day. For many entrepreneurs, this is a rare opportunity to acquire a massive sum of money – and financial security – by selling a business to a larger organisation.
When you navigate a successful sale, merger, or business acquisition, the benefits can be significant. However, when selling a business, if you make the wrong decisions, you can do serious damage to your business – and lose a lot of money in the process. You can lose customer confidence, sales, and more.
This is why if you’re buying a company or selling a company, you need expert advice, experienced representation, and confidential support. Preparing to buy or sell a business can take months or years of work in order to sell at the best possible price.
How does it work?
In a merger, two companies form one new one. An acquisition takes place when one company is purchased by another – and becomes its new owner. Mergers and acquisitions typically begin through a series of discussions between two companies’ Boards. From there, the Boards will enter negotiations, present a letter of intent, conduct due diligence, draft an agreement, and then execute the deal and make payment.
While smaller deals take less time and longer deals are more time consuming, a typical timetable for a merger or acquisition is approximately 6-9 months. These deals can also raise many complex accounting and legal issues.
This is why many companies hire experienced intermediaries to help connect buyers and sellers, negotiate on their behalf, take care of the paperwork, and conduct the necessary due diligence, typically in exchange for a percentage of the deal.
The Essential Guide to Scale Up Challenges
Learn about how to overcome the challenges when scaling up your business
Other strategic challenges you may be facing:
❖ Strategic Funding – external funding is an important part of scaling up. Investors provide the large sum cash injections you need to kickstart your growth. You want to pick the right funding option for where your business is, and make sure you’re investor ready.
❖ Profit Improvement – making profit is how businesses grow. The more money you have coming in, the more you have to spend on improving your business. A profit strategy is important for identifying opportunities and avoiding common mistakes.
❖ Planning For Exit – exiting a business is an inevitable part of founding one. Eventually, you want to hand over the business you have created. It’s important to prepare for it well in advance and make sure you know how you want this to happen, so you don’t lose time or money trying to exit from a weak position.