Mergers and acquisitions are quite common in the world of business today. It helps business owners to expand their horizons and tap into different markets. Not only that, but it also ensures that you can get the necessary investment to fuel your business’s growth.
However, an important thing to keep in mind is that there are different avenues that you need to explore before signing up for a merger or acquisition deal. A lot of business owners are not aware of it and tend to end up not getting the best deal.
So, what things that you need to look at before going for a merger and acquisition deal? In this article, you will get a comprehensive idea of the few things that you need to consider before going for a merger and acquisition and how Obtained can help you. So, without further ado, let’s get right into it.
The Value of Your Business Negotiable
A lot of business owners think that the value of their business is non-negotiable. They think if a buyer has made a quote that will be the final deal. However, that is not the case, as you can always negotiate on the offer to get the best deal for your business. In order to do so, you first need to know the true value of your business.
There are a lot of things that come into play that help you get the best deal for your M&A (mergers and acquisitions) valuation. This is something highly important as it ensures that you have all the right tools by your side to make the most out of your efforts.
For instance, you need to take into factor your company’s projected financial growth. In addition to that, you should take into consideration the recent 409A valuation along with the prices paid for shares by the recent employees. Also, you need to look at the market value such as whether you are growing as fast as your competitor in terms of revenue.
Multiple Bidders Can Get You the Best Deal
M&A is a huge business deal and you should not rely on one bidder. Instead, it is best that you focus on different options by getting bids from multiple players. Think of it in the context of a day-to-day business deal. You would want to go through different shops and see if you can find the best deal for buying any product.
Or, if you want to sell your car, you won’t just show it to one person right? Instead, you would want to show it to different buyers and then close the deal with the buyer who makes you the best deal. That is exactly something that you need to do for your business deal as well. With having a reliable partner like Obtained by your side, you can get multiple deals for your business.
Their corporate services can help you with this aspect of your business so you can expand its operations. Not only that, but Obtained can also help find the right Electronic Money Institutions (EMIs) and open bank accounts to enter a different market. But if you plan on selling your brand altogether, then you can take their corporate services for M&A.
Be Prepared and Know Your Numbers
As a business owner looking to sell their business, the one thing that you need to keep in mind is your numbers. This includes remembering the financial statements and other key figures. This is something highly important as it ensures you can present the seller with any information that they need.
If you’re the CEO of your own company, then you should have a pitch ready on both the strategic and financial end. You can then have a lead negotiator to help you negotiate the deal for you. Finding the right seller through Obtained is possible, but you need to convince them that your business is worth what you are asking for.
Have a Definitive Acquisition Agreement
Last but not least, there is no deal until you have a final agreement on the table. A handshake doesn’t guarantee that a deal will go through. Therefore, it is highly important that you need to have a full and final agreement to finalize the agreement between you and the buyer of your business.
Also, it is important to have everything written on the final agreement. For instance, you should mention the purchase price and transaction structure. Along with that, you should mention if they contingent purchase price adjustments or Milestones for earn-outs. Either way, you should focus on including everything in the final contract.
Final Thoughts
Knowing about these things regarding mergers and acquisitions is vital as it ensures you can close the right deal for you. By getting help from Obtained, you can ensure that you get the best buyers for your business.
Content Provider: Zeest Media
