When planning an M&A deal, lessons from past M&A deals may help you prepare and execute the present M&A deal. There are many lessons, including potentially the following:
- Small fish matter as much as big fish. Small cogs help the big wheels go round
- Beware of time differences, upcoming holidays, upcoming reporting dates
- Any M&A deal must be done by December 15 not December 25, or will it wait till next year?
- Contact lists are vital of all the players.
- Check out government, legal, tax and licensing approvals needed.
- Will customers stay put after the change of ownership? Especially if any new companies are planned?
- Check out board and shareholder approvals needed.
- Can you spot an opportunity they haven’t? Unlikely but it happens
- Avoid weird tax planning situations
- Beware of companies delinquent or behind in their tax reporting
- Check out intellectual property (IP) protection.
- Beware of employees, subcontractors or others who know too much. Gossip can kill the deal. Or do they know something you need to know?
- Don’t rip off patented technology gleaned in due diligence.
- Etc
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.
- The above is only the tip of the iceberg. We have withheld names for obvious reasons.
- 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.