19 Jan 5 Milestones to Achieving a Transaction in 2022
We spent the last 12 months in an accelerated market, executed dozens of combinations, advised dozens more on getting ready for a combination and here is what we have boiled it down to, if you’re looking to get a deal done in the next year.
1. Be market ready
The truth about market readiness is knowing where you fit. Whether selling or buying, understanding what you are looking for within the market and understanding your value to the party is the true sense of being market ready
2. Solid financial performance:
We always encourage our clients to undergo audited financial statements, maintain solid, timely tax reporting and payments as both buyers and sellers are always going to look for third party validation and understanding on prepared financial statements.
3. Look ready:
Fit and finish carries a lot of weight when it comes to market perception. After all, you want the right people at the table when you are selling (or buying).
4. Be realistic when determining valuations:
The hardest part of mergers and acquisitions is determining what each party is worth.
Working with an advisor like Revenue Rocket will help you understand those levers and value streams to ensure that both sides have a robust understanding of the value that will come from the combination and the price to pay for it.
5. Be open to creative deal structures:
The reality behind deal structures is that in order to obtain the best fit or highest valuation, or most attractive exit, or most attractive retention program you will need to be open to all types of currency, terms and timelines.