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What your acquirer is really thinking

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"M&A is very strange, a game of centuries and ducks"

So said one of our repeat acquirers, a keen cricket fan, recently.

As Head of Business Development in Europe for a publicly-listed corporation, he has long experience of buying companies. And when it comes to finalising a deal, he acknowledges two consistent truths.

The first is that maintaining the momentum of any company acquisition is vital.

The risk, if a deal drags out over time, is not simply that it will cost more to complete. The risk is it will not complete at all.

And the second is that a company sold with the support of a good M&A specialist is easier to buy. While some assume that a professional acquirer would prefer to manage a transaction directly with the business owner, any committed acquirer will welcome the presence of a professional sell-side advisor.

He knows the paperwork will be in place, the financials completed, the business properly prepared and the vendor will be clear in their objectives.

Although the role of an advisor is to secure the best possible deal for the vendor, the benefits to the acquirer are also significant. Transactions are completed more quickly, and the risk of losing months of painstaking due diligence and negotiation is much reduced.

And unlike cricket, that means a win for both sides.

 

Dave Rebbettes's picture
Posted Mar 2016
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