Seal The Deal Without Regrets
It is not everyday that one goes about selling a business, nor everyday that one buys a business for sale. Therefore, experience in the field is generally limited, both with the buyer as well as the seller. The process is also complicated by a phenomenal amount of issues, complex steps and paperwork. Even a seemingly small point,(if overlooked) could become a gnawing wound and prevent you from sealing the deal smoothly.
A survey indicates that about 99% of North American companies are planning a strategic alliance or takeover in the following two years. The first two months of the year 2009 has already seen M&A deals worth 1.21 billion of US dollars begin announced. This spells immense opportunity for both buyers and sellers. However, jumping onto the bandwagon without clarifying certain facts can land you into serious trouble.
Below are a few tips that help seal the deal of your M&A transaction without regrets
- Legal investigation – In order to seal the deal smoothly, both parties need to ensure that they have the legal aspects of the transaction under control. The ‘red flag’ areas must be clearly marked out. Seek through and professional advice right from the beginning of the M&A deal. The ownership deed, licensing terms, patent portfolio, etc must be examined professionally as well as personally.
- Personal investigation – All buyers know the critical importance of due diligence and the need to undertake a personal investigation of all the aspects of the business before they seal the deal. However, this does not mean that sellers can simply sit back. Keep in mind that in the business world the ultimate onus lies with the person who signs on the dotted line. So run personal checks to backup the professional advice irrespective of which side of the table you shall sit on.
- Hire sensibly – As a buyer as well as a seller, it is important that you hire experienced and professional Business Brokers or M & A intermediaries who not only know the M&A process thoroughly, but are dependable in maintaining confidentiality and are ethical. A firm which does not restrict itself to the local market but provides international opportunities is of great value when choosing an M&A intermediary firm. Simply sticking to your lawyers and business advisors may restrict your knowledge greatly, since mostly, these professionals are not trained in the M&A of Business Broker arena.
A good business broker or M&A intermediary can help tremendously to seal the deal without loopholes. Not only does the firm offer experienced staff but also ensures that the confidentiality factor of the deal is given prime importance. Understanding completely that most M&A deals are a one time transaction, the firm is known to leave no stone unturned in ensuring that the process is a legal and hassle free one. All in all, it would be right to say that a reliable, ethical and experienced M&A intermediary firm can help tremendously to seal the deal without loopholes and ensure a smoother pre as well as post M&A environment.
