EXECUTIVE SUMMARY:
Motives matter when doing an M&A deal.
Consider among other things, the following:
(1) What each side wants
(2) What each side has
(3) Will the deal fit the market (and the stock market)?
(4) Etc
We are experienced M&A consultants. Can we help you? Need more info?
[email protected]
https://mergeacq.ai/
ARTICLE:
When planning an M&A deal, the motivation of each side matters.
The seller will need to have ready a reasonable answer to this question. Possible seller motivations include:
• Opportunity to make a capital gain?
• Realize opportunities?
• Forced to sell – bankruptcy, death or sickness?
• Retiring?
• Increased regulation?
• Increased competition or failing business?
• If the latter – is there a turnaround opportunity or an asset opportunity for the buyer?
• Etc.
The buyer may want access to a new market, product or technology. But not always. Other reasons for buying include:
• Access to new customers or market or sector,
• Economies of scale,
• Market dominance,
• Turnaround opportunity,
• Asset opportunity.
• Etc.
But the buyer must do due diligence and be careful not to over-spend.
It is also vital for the buyer to plan “the morning after”. How will the buyer integrate the purchased operation into its pre-existing operation?
Next Steps:
- Contact us if you are looking for an M&A candidate to buy or sell.
- Contact us if you have your candidate and want to prepare for a deal.
We are M&A advisors and coordinators. Please note, we maintain complete confidentiality and aim to avoid all conflicts of interest. If you hire us, the other side cannot. Always consult legal and professional advisors in each country at an early stage and conduct sufficient due diligence procedures before signing anything. We will be happy to help you steer the process.
For more information, please contact us at:
Email: [email protected], cell: +972-54-6449398, www.MergeAcq.com
© All rights reserved. Leon Harris 18.12.2024