The Best Deals Are Thoughtful Deals

To an outsider, mergers and acquisitions sometimes seem like they happen overnight. Offers are made, negotiated, and closed before the employees even know something is going on. Each team pulls long hours for a few weeks and then the deal is done.

Insiders know this is rarely the case. The best M&A deals have been considered, researched, and thought through for years leading up to the actual transaction. The worst deals are impulsive, under-researched, and time-pressured. Unsure which category you fall into? Consider the following questions before moving forward with any opportunity.

Is the seller truly ready to sell?

M&A decisions are often clouded by emotions. Selling a business that you built from the ground up can be difficult. Assigning valuation to a passion project feels threatening. Fear before a large decision is natural.

The last thing either side wants is to move down a path towards a transaction, only to have the seller panic and back out at the last minute. Or worse, panic and move forward with the deal anyway – making it almost impossible for anyone to walk away feeling good about the end result.

The ideal seller is ready. They have thought through their options, understand the valuation of their business, and (importantly) have plans for what they’ll do after the sale closes

Is the buyer a great fit?

When a seller has carefully prepared to sell, they have a very good understanding of what they are offering. They understand their value proposition, target buyers, and the in-and-outs of their company’s valuation. With this much forethought, identifying the right buyer becomes much easier. Not every potential buyer that approaches the seller will be a good fit. A prepared buyer will save time by understanding what they are looking for and what they have to offer before they approach the table.

A prepared buyer understands both what they are investing in and what resources they have to invest.

If you are preparing to sell your first business or make your first major purchase, we can guide you to ask the right questions before you move forward. Symmetrical assists Middle Market companies strategically assess their needs and prepare for big transitions.  Contact us for a confidential discussion about how we can help.

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