The Urge To Merge

own financial house in order

  • Be honest and upfront about your firm’s weaknesses, then find a partner who can help “fill in the gaps.”
  • Do extensive due diligence on the company you’re selling to, merging with, or acquiring.
  • Find a complementary partner or business. Consider, for example, potential M&A targets that operate outside of your main line of business.
  • Pay close attention to the growth potential of the newly formed entity and don’t let it get out of hand without first creating a strong infrastructure to support it.
  • Look at the newly formed relationship as a marriage, not just a business partnership.
  • Learn the ropes. You can start by reading The Art of M&A: A Merger Acquisition Buyout Guide (McGraw-Hill Trade; $125) or Due Diligence for Global Deal Making: The Definitive Guide to Cross-Border Mergers and Acquisitions, Joint Ventures, Financings, and Strategic Alliances (Bloomberg Pr; $75).

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