As a business owner, you may be curious regarding how much of your time you should expect to invest in the process of a merger or acquisition from start to finish. First and foremost, it is important to recognize that any M&A deal will take time. This can be anywhere from several months to years, depending on various circumstances such as the state of the current market and the type of business. The good news is that if you hire an experienced M&A advisory team to handle the transaction, it will not require much of your time at all in the early stages.
The Preliminary Phase
A quality M&A team will handle the vast majority of the necessary work required to facilitate a transaction with the understanding that you have a business to run and you need to stay focused on doing just that. This early phase of work includes:
- Compiling due diligence documentation
- Studying the market
- Assessing the data
- Creating a solid marketing strategy
- Vetting potential buyers
Of course, you should constantly be kept informed of all developments in the process, but you will not need worry about doing all the legwork and dealing with time-consuming details. An M&A team will guide you through every step, making sure that all communications are clear and concise, and that you can stay focused on your day-to-day life with some peace of mind.
There are many reasons why enlisting an M&A advisory firm as your partner offers you a major advantage in a deal. You could try handling a sale yourself, say with the help of your lawyer or CPA, but it is a complicated process that makes it very difficult for a business owner to juggle running their business while dealing with all the minutia involved in an M&A transaction—especially when you have no prior experience in selling a company. Think about how much you really know about corporate and antitrust laws, securities regulations, and where to even find a buyer. Not to mention that experienced buyers will recognize that you are in unchartered waters and will not hesitate to take advantage of your lack of practice. Keep in mind that it is firmly established that the majority of mergers and acquisitions (70 to 90 percent, according to the Harvard Business Review) fail. This makes it even more crucial that you have an experienced team working on getting you results. Experienced M&A advisors know how to get deals done because they do it every day.
But there is more to it than that. Selling your company is an emotional journey. Your personal feelings can easily cloud your judgment regarding a sale. It is incredibly helpful to have a team in your corner that is looking out for your best interests while being able to assess buyers on their true merit. A good M&A advisor will have empathy for you during this difficult process and know how to help you through it while getting a high company valuation and the results that you deserve.
The Later Stages
Once you agree to an offer, it will require a little more participation on your part, but in a way that you should welcome, because this great milestone is finally nearing completion. You will be introduced to prospective acquirers and presented with their letters of intent. Contract negotiations and financing strategies will be underway. Your M&A deal team will work with you to evaluate the top bidders and narrow down the options, and get you across that coveted finish line to an exit strategy that is designed specifically to fulfill your unique aspirations for the future. Once you have decided on a buyer, you will need to work together to formulate integration strategies for the ultimate success of the business.
Thinking About Selling?
Even if you have not made up your mind to sell, it can still be fruitful to have a conversation about the possibilities for your future. The M&A experts at Benchmark International would love to discuss your options and help you gain insights into what and when is right for you, your company, and your family. If you choose to sell, our proprietary methodologies and global connections will help you find the right buyer and get the maximum value for the business you have worked so hard to build.
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL
Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $6B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 12 offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.