Opportunity Preparation: How to Get Your Business Deal-Ready Now

2018, 01 Oct | In Exit Planning, Investment Banking, Selling a Business

Sometimes M&A opportunities hinge on being ready to take the leap.

Middle market companies involved in mergers and acquisitions overwhelmingly agree they could have been prepared better.

The good news is that the same tactics that prepare your company for a deal also help it run better every day. Here are a few simple tactics you can adopt now to get deal-ready.


M&A Deal Preparation: A Three-Step Strategy

Here are the three critical steps we believe will move a company toward deal readiness:


Get Focused Now.

If you’re planning to sell or buy, or just want to be ready for the possibility, your books must be reliable and organized.

You must also document your processes, upgrade IT, implement a cyber security plan, and lean on good working capital management processes. Doing so can help you better document current performance, improve performance in the future, and support any claims you make to deal partners.

It’s also a good time to ensure you have good relationships with business consultants and advisors such as your tax consultant, lawyer, and bank. They’ll play an important role in deal-making, and right now they play a vital role in the health of your business.


Know Your Goals.

Don’t just jump blindly into M&A. What do you hope to do? Where do you want to go? For example, do you want to acquire new talent or intellectual property? Penetrate a new market?

Sometimes growth requires, first, getting rid of what’s not working in your business so you can streamline operations and prepare for new growth.


Cultivate a Deal Plan.

The typical M&A transaction takes 3-12 months to finish. Planning for the deal can take years. Planning now can condense the timeline to closing—an important factor in deal success.

To be prepared when a deal presents itself, you must assemble a deal team full of outside experts sooner rather than later. An experienced M&A advisor or investment banker can help you review your options and competently navigate due diligence.


Begin Planning Today

As you move through the preparation process, you must also ensure your leadership team can handle the challenges of sale or acquisition while running the business. This dual role can be challenging, and you may need to work on cultivating a key management team to help shepherd the deal to completion. An operational plan that focuses on both components of success can help you efficiently allocate resources.

It is never too early to plan. A skilled advisor can be invaluable to the planning process. So begin planning today. It’s the only way to ensure you can capitalize on a great opportunity that might arise tomorrow.

Middle market companies involved in mergers and acquisitions overwhelmingly agree they could have been prepared better.

About Merit Harbor Capital

Merit Harbor Capital is a leading Boutique Investment Bank focused on serving middle market companies. They are a client-focused team of experienced entrepreneurs and operating executives with expertise in a broad range of industries. Unlike traditional banks that focus on the transaction, we set our sights on the long-term goals of your company – and we provide the personalized service to assist you every step of the way. Our firm is known to provide strategic merger and acquisition investment guidance, corporate finance and consulting support services for boosting the growth of business. Merit Harbor, member FINRA / SIPC, is a full-service Broker Dealer licensed in 50 states.