If you are looking into acquiring or merging with another company, keep in mind that this is a complex process and you should be prepared for any unexpected obstacles along the way. We have compiled a list of questions to help you determine if you are ready to move forward.
Here at Andrew Barnett, Mergers & Acquisitions, we will hold your hand throughout the entire process and own the project from start to end.
Are you willing to make the investment and assume the risks associated with this potential merger or acquisition?
True entrepreneurs live or die by the risks they take and this is in their nature. That said, a project of this magnitude really depends on your risk tolerance. What we would say here, is just to assess your tolerance and understand that this risk may be higher than the average one, but of course the payoff could also be big.
Do you have the capital?
You obviously should consider the capital necessary for the acquisition, but you should also consider future capital requirements that will be needed post acquisition or merger for continued operations or growth. Andrew Barnett, M&A helps determine this for its clients. /p>
How long can a merger or acquisition take place?
As much as we would like to answer this questions, there are many variables and we cannot provide a definitive answer. What we can tell you is that we work quickly and avoid delays to complete the project as soon as possible.
What financial considerations should a business have before proceeding with a merger or acquisition?
You obviously should consider the capital necessary for the acquisition, but you should also consider future capital requirements that will be needed post acquisition or merger for continued operations or growth. Andrew Barnett, M&A helps determine this for its clients.
What other considerations should I think about before proceeding with a merger or acquisition?
An important consideration is whether you are qualified to lead or manage the business, or if you will need to bring in a team or additional leader to assist. This is something that can be commonly overlooked.
How important is an in-depth understanding of the industry of the business you are acquiring?
It is very important to have a firm understanding of the industry, competitors, trends, etc... If you don't have it, it is recommended that you add personnel that does who can assist you. Consultants can also help.
Are you also considering your opportunity cost?
This simple rule of economics should be considered in-depth before moving forward with any merger or acquisition. The current state of the company is one thing, but what is the future state if you do not move forward with the project and proceed with the best alternative to your business, company, money, or time. This is something you definitely want to keep in mind.
Are you familiar with the Mergers & Acquisitions Process?
As mentioned before M&A can be a very complex process. identifying the industry, analyzing competitors, performing due diligence, valuation of the company, negotiations, legal agreements, etc... are all steps in the process. If you have little to no experience here, you would definitely want to seek the help of experienced professionals, such as Andrew Barnett.