Resources Every Business Owner Needs for M&A Discussions

November 3, 2015 Brian Beattie

Selling a business can be tricky, and vertical software companies have specific needs. Here at Volaris, we focus on acquisitions so we have come up with the 6 resources every business owner needs to successfully enter an M&A process:

#1 Valuation Tool Kit

The merger and acquisition process can be lengthy - having a reasonable valuation can save negotiation time. Calibrating your valuation expectations is key to engaging prospect acquirers in meaningful discussions.

#2 Buyer Profiles

Let your long and short-term goals steer you towards the “right type” of acquirer. Weighing the advantages and disadvantages of each acquirer in relation to your needs is crucial for success.

#3 A Roadmap

Evaluate your needs and map a unique strategy to follow for the course of the sale. Determining your process early will allow you to set goals and improve preparedness.

#4 Information Memorandum

After mapping your process, start compiling an information memorandum for your company. Begin by running audits and reports to compile financial resources and records. Next, present the data in a clear and concise manner that portrays the company in a truthful and attractive light.

#5 A Due Diligence Checklist

Before beginning the due diligence process, always anticipate a detailed checklist from the M&A team on the other end.  The first step in preparing for this checklist is producing clean and accurate data, which can be discussed in great detail. Next, come prepared for due diligence with a checklist of your own. This checklist should be representative of your needs and criteria for the sale.

#6 Negotiation Techniques

Intimately understand your priorities and always be prepared for negotiations and auctions. In some cases, this may involve sourcing external support such as legal counsel. Ensuring you have adequate professional support through this process is crucial to securing the deal you want.

In Conclusion...

These tools are vital throughou the M&A process and will prove invaluable if used to their full advantage. Want more content regarding mergers and acqusitions? Visit us on Facebook, Twitter, LinkedIn, and Google+.

About the Author

Brian Beattie

Brian Beattie is the Chief Financial Officer at Volaris Group. Besides overseeing the financial health of the company, he works closely with Volaris’ legal and M&A team on all new acquisitions. Brian is an expert on every stage of the M&A process – from sending out the non-disclosure agreement to executing the sales purchase agreement.

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