Finding a ready, willing and funded buyer is just the first step in selling your business. Surviving due diligence and post-merger/acquisition integration is where the majority of deals end up as financial dissappointments or are fraught with other difficulties. Putting the right team in place can help you avoid trouble and meet your pre-acquisition expectations. According to a Bain & Company 2002 study, following are the root causes for why deals don't meet the buyer's expectations:
67% Ignored integration challenges
66% Overestimated synergies *
61% Problems integrating management teams
50% Due diligence failed to highlight key issues *
50% Target was dressed up for sale *
45% Insufficient strategic fit *
41% Market conditions changed
36% Doubts were pushed aside *
34% Caught up in the bidding process *
28% Lost focus on base business
26% Loss of customers
* Items that should be caught during due diligence.
Professional guidance is critical in any size merger or acquisition. You need more than just a business broker or business intermediary on your side. It is critical to have a CPA, attorney and an insurance advisor knowledgable about the industry you are active in. In some cases, it may benefit you to hire a consultant and other experts to provide to you an expert's opinion. If you are in the market to acquire a business, let me help you create the right team to complete the right acquisition and prevent post-acquisition dissappointments and dificulties.
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