When planning an M&A deal, the ingredients of the deal matter.
Business owners may want to retire or they may be hoping for a dream offer for their business – in hitech or low tech. Prospective business purchasers may want to expand their market share or they may fear falling behind their competitors. These are all typical features of an M&A deal.
However, M&A deals tend to be 10% economic, 10% tax, 10% legal, and 70% psychological. The “smell of the money” has an effect on people’s behavior in most deals.
So how does a selling company exit (M&A deal) at a fair price? A corporate auction may sometimes improve the starting price. But how does a selling company get to the best starting price in the first place? And what do potential buyers need to look for in a target business? What is a fair price, and what conditions should apply?
In other words, how much is the cake worth? What are the ingredients to consider? In practice there are quite a few factors to consider – the Dirty Dozen. They are listed below.
M&A Pre-deal preparation for buyers and sellers:
- What is being sold in an M&A deal
- Structuring an M&A deal
- M&A deals – motives and strategy for buyers and sellers
- Managing an M&A deal
- Accounting aspects in an M&A deal
- Tax aspects in an M&A deal
- Legal aspects in an M&A deal
- Valuation aspects in an M&A deal
- Paying for an M&A deal
- Post M&A integration starts before the deal is over
- Psychology of an M&A deal
- What lessons are there from past M&A deals?
- Where do professional advisors fit into M&A deals?
Yes, the Dirty Dozen M&A ingredients consist of at least 14 items, probably more in specific cases.
Next Steps:
- Start planning the ingredients of your proposed acquisition or sale based on the above.
- Many of the surprises may be predictable with proper preparation.
- What is the other side really after? Can you read between the lines?
- Consult legal and professional advisors in each country concerned in specific cases.
- Contact us if you are looking for an M&A candidate to buy or sell.
- Contact us if you have your candidate and want to prepare for an M&A deal.
© Leon Harris 19.5.25, all rights reserved. Email: [email protected], Cell: +972-54-6449398,