Lack of Urgency - Now, while the parties to a merger or acquisition cannot exchange commercially sensitive information prior to being under common ownership, there is more than enough critically important, legally permissible prep work to keep an integration team occupied for a few months before day one. However, the majority of chief executives are unaware of this and wait for clearance from the regulatory authorities. Speed is essential in the M&A game.

The merging of two companies can, in any instance, create a significant amount of upheaval, worry or concern for the parties involved. Successfully integrating two organisations without any teething issues is by no means a simple process and, according to professional services giant PWC, the flurry of activity surrounding a deal means that good communication is often overlooked.

At first glance, business owners are best-placed to oversee the sale of their company. After all, they are the ones who have been at the helm since the very outset and are likely to have an encyclopedic knowledge of the business’ history, finances, employees past and present and all of the key ingredients that have gone into its success.

We often hear about the significant and market-changing deals that take place, however it is important to remember that there are those that don’t succeed. A study by the Harvard Business Review (HBR) showed that the average rate of M&A failure is at a substantial 80 percent.

When businesses consider the possibility of a merger or acquisition, the benefits of the change are examined; improved profitability, availability of new markets and enhanced/strengthened competitive position. Now, while it is difficult to argue that these aspects of M&A can be extremely good for a company’s bottom line, the same may not be true for the business’ employees.

As a small business or start-up, the prospect of undergoing a merger or acquisition can be daunting. However, this need not be the case and it can, in fact, bring positive results to your company.

Many mistakenly think of an acquisition strategy as the only strategy, leaving the business to ‘float’ while all hands are on deck to steer the company into the hands of another captain. But then what? Rather than be a substitute, M&A should be seen as an enabler putting the wind in the sails of a business.

In the high-stakes world of M&A, discretion is the one of the most important elements, as all parties involved are under an ethical and contractual obligation to keep details private until the time is right to announce the deal. During this period, acquisitions are often given cryptic codenames to avoid drawing unnecessary attention.

In a recent Telegraph column, John Timpson, fourth generation chairman of multi-service retailer Timpson, criticised the idea of bringing outside professional managers into family businesses, stating they are at risk of losing their “x factor”.

In many cases, mid-market business owners and entrepreneurs, like you, only go through the mergers and acquisitions process once in a lifetime. It’s difficult to know what to expect from a transaction, and business owners often, unknowingly, limit their chances of achieving an ideal outcome for what will likely be the biggest deal of their lives.

According to PwC’s latest Global Family Business Survey, only 16% of the 2,378 businesses interviewed had a documented succession plan in place.  It is particularly important for those involved in a family business to consider an exit strategy at the earliest possible stage, especially as the Business Families Foundation reports that only 13% of family businesses make it to the third generation.

Oculus, the virtual subsidiary of Facebook, has purchased British firm Surreal Vision as part of a drive to acquire virtual reality-focused businesses. The team at Surreal Vision is said to be moving to Washington to work at the Oculus lab. So how do small IT businesses get on the radar of the bigger companies if their owners have acquisition on their mind? Here are some top tips for you if you are considering selling your IT business and want to ensure that you attract the best buyers.

It was Steve Jobs of Apple who once said: "Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it."

Throughout our 10 blog series, we have discussed the different processes and stages recommended for you, a business owner, to take that could make your company more valuable and saleable.

In our penultimate blog we will discuss legal issues in your business, and the importance of tackling them.

In the final three instalments of our 10 blog series, we will discuss running your business as though selling is not a necessity, tackling problems that may lead to legal disputes and the importance of first impressions of your company. 

You, as a business owner, need to be aware of the vulnerabilities faced by your business if the products and services you offer are easy to replicate.

At the halfway stage of our 10 blog series we’ve already discussed removing owner dependence, demonstrating growth in sales, profits and cash with good projections, reducing customer and supplier dependence, adding depth in staff, and making sure your business’ brand values are clear, attractive and resilient.

In this instalment, the fourth of our 10 blog series, we will discuss the importance of brand values.

In the third instalment of our 10-blog series about the steps business owners may wish to consider when working toward maximising value and saleability, we look at some of the external and internal factors at play:

We’re pleased to bring you the second instalment of our 10-part blog series about the steps you can take to improve your business in the eyes of an acquirer, before taking it to market:

Over the course of a 10-blog series, we will highlight the key steps business owners should take in order to maximise the value and saleability of their business. Industry specialist and founder of ‘Prepare to Sell’, Richard Wright, advises 10 key steps.

Thoughts of selling are all too often put off by business owners until a major event demands that it be given due consideration.

In a recent article, “10 surprising lessons learned from selling my company to eBay”, internet entrepreneur, Kristopher B. Jones, founder and former president and CEO of Pepperjam details the lessons he learned during the process of selling his company.

Many business owners, particularly those in the lower-middle market, will often attempt to reduce their tax liability. This practice is commonplace throughout SMEs, a perk that enables business owners the ability to keep hold of more of what they earn.

Due diligence often throws up a broad range of issues that can threaten to scupper a deal. One of the biggest culprits, surprisingly, is an issue most business owners possibly wouldn’t consider to be a factor in this situation: HR.

At Benchmark International we always encourage that business owners to plan their exit in advance, as businesses which are ‘deal ready’ often attract the highest values.

The majority of our clients instruct Benchmark International with the task of generating the highest possible value for their company. Although this is our primary objective in any case, it is fully understandable that an outgoing business owner would wish to secure maximum value for what is possibly their most significant asset – it’s human nature, after all.

Whether a decision has been made to sell a business or not it is always beneficial to consider how a prospective buyer would perceive your business. Viewing the intricacies of your business from an outside perspective is typically the best way to identify areas within your business that could possibly reduce overall value upon an eventual exit.

Whether you are seeking an exit from your business in the short, medium or long term, it is always beneficial to bare in mind how any potential acquirers will perceive your business. In order to attain the highest value it is important to get the company in the best possible shape. In doing so, business owners should endeavor to eliminate any potential issues which may arise come the due diligence process.

Grounded within the theory that the whole is greater than the sum of the individual parts, synergistic acquisitions are one of the most common forms of company sale.

A host of internal and external factors need to be considered when selling a company in order to ensure that maximum value is received upon its eventual sale.

Dealing with business owners day in day out we find it startling how so few have have a considered exit strategy in place. Many believe that when the time comes to retire or move on to something else, all will simply fall into place. The reality is far from that and due to external market factors, timing and planning is crucial in this decision in order to receive maximum value for what will most likely be a business owners most valuable and prized asset.