04 Apr Questions to Ask before you Consider an M&A initiative
What really are the questions to ask yourself before considering acquiring another firm? Are you ready for an M&A transaction? What are your long term goals for your tech-enabled services firm? Companies come to us for not only buying and selling, but organic growth and M&A readiness, which is why we’re diving into M&A readiness in this episode of Shoot the Moon.
Will I hit my revenue and profit goals with organic growth alone?
M&A is the fastest path to growth
What is my strategy in acquiring another firm?
Will this expand revenue, add new services, bring new people, or add a geography? How will this impact channel relationships? What are the potential benefits of an acquisition for my company’s growth and success?
Do I have the right team in place and is it’s culture defined?
Will my leadership team be able to lead a new group? What type of firm do we need to find so our cultures can blend?
Do I have the financial capability of doing a deal? How can I ensure that I have sufficient capital (cash, debt, equity) available to finance the acquisition without putting my company in a vulnerable position
How can I mitigate the risk of a deal?
What type of due diligence will we have which decreases risk while still moving forward in a deal?
What outside team do I need to ensure a deal is done that’s win-win for all.
M&A advisor for sourcing, deal making, negotiation, due-diligence and being the bad guy on tough conversations. Lawyer for contracts.