TAS Tips for Dealmaking

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BUYING AND SELLING
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DEAL PLANNING

Embrace your Skeletons

We'll say it loud for the people in the back: no one in M&A is trying to kill a deal or get you with a "gotcha" moment!
As experienced M&A professionals, it is our duty to ask the tough questions and pull any skeletons out of the closet before they become the 12-foot skeletons outside of your house for Halloween. Invite the skeletons to the transaction table, dust off the cobwebs and work with your transaction advisors to mitigate any negative impacts.

Together, we can create a plan to address the skeletons (and we don't mean giving them funny nicknames).

A Seller's Dream: Options

If we've said it once, we've said it a hundred times: sell when you don't have to. Equally as important: know your options.
Whether that be a full sale of the business to a strategic buyer or private equity group or a partial sale to family members or management, do your research to determine what path is best for you. In fact, early conversations can save big dollars as a seller.

Unfortunately, there isn't a crystal ball that will tell you what your best option will be. Fortunately, the next best thing is to work with a trusted advisor to explore your possibilities. Our transaction advisors are here to help you explore your options.

SCHEDULE THOSE WEEKLY MEETINGS WITH ADVISORS

Remember our suggestion about fostering an environment of open communication? What better way to do that than by hosting weekly meetings with your advisors?
Meeting with your advisors on a weekly basis provides a great opportunity to discuss progress, questions and concerns. You may also want to invite financial, legal or technology advisors to the party to impart transparency across teams. Not to mention save time by maximizing efficiencies when working towards your deadline.

In our experience, these meetings identify any major concerns early in the process as opposed to uncovering a major issue right before deal close. Schedule those weekly meetings now and thank us later.

Assemble your deal team before it's too late

When selling is on the table, most business owners file those conversations away as Classified.
However, we are here to say: assemble your deal team as soon as a decision has been made.

According to Sikich's Manufacturing Industry Pulse, only 4% of manufacturing and distribution executives know what providers are needed to make up their deal team. No matter your industry, start with your key internal squad members, including your CFO/Controller, COO and Head of Sales. The other half of your dream team - the investment bank, QofE providers and potential buyers - will require a load of information to begin the process, so it's valuable to have then lined up ASAP.

Remove the Classified stamp from your selling plans and make sure your team is prepared for what's ahead. And when you're ready for the QofE process, you know who to call.

Get to the Finish line with Effective Communication

There is no one involved in M&A who wants to see a deal killed because a serious issue was not voiced sooner.
Fostering an environment of communication helps get the deal over the finish line efficiently.

Is information unavailable or will it take a while to gather? Let the teams know. Curious if there is perhaps a work around? As your advisors! Is a request or a process unclear? Clarify with the person asking! Found a problem that might derail the entire deal? Chat about it. Everyone involved in the transaction has the same goals in mind.

Get to a result that all involved will be happy about through effective communication. We know it's easier said than done, so if you need help, you know where to find us.

The Not-So-Obvious Bottom Line Impacts

Employee turnover and disengagement can ruin your bottom line post-acquisition.
Quickly integrating what employees do and how they do it, and ensuring they are engaged and productive post-acquisition, will help you realize the return on your investment sooner.

Failure to focus on this can negatively impact your bottom line. Don't say we didn't warn you!

SELLER'S OPTIONS

Embrace your Skeletons

Fostering an environment of communication helps get the deal over the finish line efficiently.

Is information unavailable or will it take a while to gather? Let the teams know. Curious if there is perhaps a work around? As your advisors! Is a request or a process unclear? Clarify with the person asking! Found a problem that might derail the entire deal? Chat about it. Everyone involved in the transaction has the same goals in mind.

Get to a result that all involved will be happy about through effective communication. We know it’s easier said than done, so if you need help, you know where to find us.

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