Here at Saddock Advisory, we are well practiced in M&A issues, and we provide advice through the valuation process. Through aligning company financials, setting an exit target, and assisting in tax implications of sale, we can help you maximize the biggest move of your life.
Mergers and acquisitions are not cut and dry processes. There’s no secret formula or even a one-size-fits-all approach. However, there are a few key factors that can play a role in the success of an M&A.
Our team has handled its fair share of M&As and we’ve seen the most commons ones many times.
Today we want to shine a light on some of the best practices that we believe are sure to make things run as smoothly as possible and help you maximize the biggest move of your life.
Five Crucial Steps for a Successful M&A
It’s a rigid procedure with a lot of moving pieces. Hence if you make one wrong move, you could see all your hard work go down the drain. Here are some of our tried and true keys to successful mergers and acquisitions.
1. Assemble the Dream Team
No matter the company size, you likely have a sales and marketing, finance, and operations division.
You’ll want to select the best of each team and invite them to the table. Their input will be invaluable. It’s important to note that bringing in outside help can bring a fresh perspective, plus it can ensure that things run smoothly and tasks are completed.
2. Clear Communication Is A MUST
You cannot start from a place of poor communication. Otherwise everything will fall apart.
You want to share information in a timely manner, detailing the process, expected impacts, and how team members and customers will be affected. Finally, you’ll want to do so by highlighting what you expect everyone to be doing.
Skimp on the communication and you’ll have two sets of unhappy employees.
3. Evaluate Finances
Financial stability is crucial during mergers and acquisitions. Before you even consider taking on an M&A, you must be 100% certain that your company has the appropriate liquidity to make and sustain this investment.
Our team of experts can advise you on where your company stands.
4. Train Your Team
Mergers and acquisitions bring out everyone’s fear, especially the fear of incompetence.
Employees worry they may see their job disappear or that they will underperform in their new environment. Keep your team members happy by providing adequate training and information on new processes and expectations.
5. Anticipate Speed Bumps
No matter how similar the two company cultures are, they are not the same.
And when you throw two differing organizational cultures into the same arena, there may be a clash. You should actively work to get feedback from your team, enacting necessary changes, but don’t panic at the first sign of tension.
Every organization will experience different growing pains and require specialized attention, but for the most part following the five steps above could help ease the pressure during an M&A. Additionally, these five factors can make the whole process run smoother for organizational leaders, employees, and even customers.
To learn more about preparing your company for a smooth merger and acquisition, let’s talk! Saddock Advisory has been guiding clients for three decades. Get in touch with us today!