How To Get Your Business Ready For A Merger Or Acquisition

A merger is a great way to grow your business, to take it to new heights. However, as you might imagine, a merger is a very complicated and delicate process that requires ample preparation – for all parties involved. This article will highlight some of the preparations and processes that need to be in place in order for a successful merger to go through.

Evaluating The Businesses

One important step in every merger is the business valuation. The business valuation is a measure of a company’s total worth, and thus determines the price that one company will pay to acquire another. There are multiple levels of data and analysis involved in a business valuation, and it can be a complex process. That being said, it is certainly not a process that your business needs to tackle alone. Working with a Certified Public Accountant (CPA), or business consultant can help you iron out the finest points of your business valuation, so that you enter the merger with the right information.

Plan Ahead To Maximize Your After-Tax Proceeds

In order for a merger to be considered successful, it’s important that the after-tax proceeds are maximized. Maximizing after-tax proceeds will put your reconfigured company in a position for huge potential growth. Accomplishing this step, however, is easier said than done. Finding all of the ways that your company can maximize after-tax growth requires the objective eye of a third party observer. What’s more, this observer needs to have expert knowledge and experience in these matters. This is where a CPA can be a huge help for your company, as CPAs thrive on helping businesses maximize their profit potential.

Planning For Exit Strategy Analysis

The exit strategy is an important, yet delicate, part of the merger or acquisition process. A CPA will help your company perform exit strategy analysis, providing guidance on such issues as inside vs. outside buyouts, gifting and estate planning, and re-capitalizations with private equity groups. Hire an experienced CPA to help your company with this important analysis.

Buyer Consulting

If you are the buyer in a merger or acquisition, there are many ways a CPA can help you. For one, a CPA can minimize your after-tax acquisition cost (while still maximizing your after-tax earnings). A CPA can also help you choose the right business entity, as this decision is a crucial part of the process. A CPA can also help your company with the negation of price and terms, as well as financing options, so that the deal goes as smoothly as possible.

Hiring The Right Business Consulting Firm To Help You Through The Merger

When hiring a CPA or business consulting firm to help your company through this process, it is important that you work with someone who has ample experiences in this arena: someone who has guided several companies through mergers. There truly is no teacher like experience. For this reason, it is recommended that you search online to find the most experienced, and trusted CPAs out there.