Maybe your company’s leadership team has given some thought to the idea of merging with or acquiring another business. You might be leaning toward a conclusion that your enterprise has hit a rut and must proactively take some rather dramatic steps to ensure continued viability and profits.
That could be precisely the direction you need to take.
Or, conversely, it might spell a fundamentally misguided move that could materially undermine your company’s bottom line well into the future, perhaps even fatally.
Do your homework.
That is advice we implicitly promote on our website at the New York City business law firm of R3M Law, LLP. Although there are obviously scores of important things to focus upon and do relative to any M&A transaction, all those matters unquestionably coalesce into that above mantra. A transaction with the magnitude to redefine a company needs to be thoroughly considered from every angle in a timely fashion and with due regard to both maximizing opportunities and mitigating risks.
Having a plan is key, which might seem to be so obvious that it doesn’t merit mentioning. We note on our website, though, that many business principals do not in fact spend the requisite amount of time and effort required “to determine the end goal” for ensuring a positive outcome.
Is it a powerful and growing business rival you need to better contend with that has your business focused on a merger or acquisition? Is your company too narrowly specialized and facing an imminent need to broaden its goods or services through increased diversification? Are other pressing factors driving the need for change?
A due focus upon those things is vital for understanding why and how you need to evolve. There are a number of additional “tips” to focus upon germane to M&A activity that can inform and guide a company as it considers whether to proceed with a major change. We will spotlight those in our next blog post.