Mergers and acquisitions M&A is a challenging process full of pitfalls. It’s therefore quite easy to fall short and make a mistake or two. For this reason, we offer these point to avoid when selling your business.
- Completing a thorough business valuation – naturally, your business’s final value depends on this, so it is important to fully understand how much your business go to market and at what cost. This requires a thorough due diligence and a professional third-party perspective. Otherwise, lack of critically important information will make you lose the upper hand in the deal.
- Motivation and reasoning behind the sale of your business during the process – we always think twice before making important decisions, and it’s absolutely normal. However, this hinders the process and can plant a seed of distrust in your counterpart, which will negatively affect the final value of your business.
- Strategically negotiating with buyers – one step at a time rule doesn’t quite apply in this case, because approaching one buyer at a time doesn’t only limit the scope of potential buyers, but will provide the counterpart with more room to manoeuvre.
- Confidentiality is the key to managing the process – a lack of confidentiality during the process may lead to vital information to key players. This can coincide with directors leaving the board or negatively influence the value of your business.
- Never undertake the sale process on your own – mergers and acquisitions will take a lot of your time. Your main priority should be on maximising the results of your business operations and making sure the financial statements and balance sheets are showing the green numbers.
The role of an International Business Intermediary as an advisor would ensure you not only best use of your time and the ability to maximise the potential of your business by taking care of all the tedious paperwork, due diligence, valuations, best match searches, market research and ensuring that you are informed at every stage of the process.