The 5 Characteristics of a Strong Merger & Acquisition

One of the fastest, and often most effective, ways to grow a small business is through mergers and acquisitions. This process, however, also comes with a lot of risk that cannot be ignored. Whether your business is looking to buy out another one, or you are looking for a potential buyer to acquire it, understanding key characteristics needed to successfully complete this type of process is essential. The following are five key things to focus on throughout any M&A process.
Defined Goals
When looking to purchase another business (or be purchased for that matter) it is important to have very well-defined goals on what you hope this merger or acquisition to accomplish. The following are some types of goals to give you an idea of what to focus on:

  • Expanding Territory
  • Boosting Sales
  • Acquiring Patents/Technology/Other Assets
  • Entering a New Market

There are, of course, many other types of goals that a business may have when it comes to buying another small business, or being purchased. Identifying these goals as early as possible, and including ways that the goals can be measured, will help get this process off on the right foot.
Throughout the merger and acquisition process, transparency is absolutely critical. All parties who are directly involved with this event will likely need to sign non-disclosure agreements to limit the risk of someone withholding information. Disclosing things about the business finances, legal situations, and anything else that could impact the purchase is important, and often legally required.
Open and frequent communication during these types of events is critical. This applies not only to communication between the two owners of the companies in question, but also with the employees. If employees feel that information is not being given to them, they are much more likely to start looking for other jobs, which can seriously hurt the company during this critical process.
Qualified Transition Team
Having a qualified transition team in place is a great way to avoid problems and keep things running smooth during and after the merger or acquisition have been completed. The transition team will help individuals from both companies learn to work together effectively, and ensure the focus always remains on the customer.
Experienced Legal Representation
Mergers and acquisitions are complicated matters, and have a lot of legal regulations that must be followed. With that in mind, it is necessary to have representation from an experienced attorney working on your behalf. Contact Carla D. Aikens to get the help you need throughout this important event.

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