Innovation is growing through 1 leading thing: Acquisition. The rate of Mergers and Acquisitions globally has been very quickly picking up the pace – and that trend is not set to slow down, any time soon.
In a study conducted by Deloitte recently, it was found that corporate and private equity executives foresee an acceleration of merger and acquisition activity this year, both in the number of deals and the size of the transactions undertaken with Technology acquisition being the new No. 1 driver of M&A pursuits globally.
So, if you’re not already thinking about mergers and acquisitions, and you run a high-growth business – you should be, because there will probably come a point where, either through a corporate venture initiative, or your own exit strategy, you will be faced with a discussion that involves joining forces, or selling your business to another. The question is – will you be ready for it?
We review why enlisting the help of a 3rd party service provider, will help you get the deal you need, when the time comes.
The details are different
The complexities involved in a merger or acquisition is different from business to business in a number of ways. You may have previous experience of having been through the process, but no two transactions are ever alike. Unless you have been through the process several times, in a number of industries, and in a number of markets, you may not be completely up to speed about the smaller details that you have a duty of care to take care of. What works for one, may not work for another.
Having an experienced 3rd party on board who have not only been in your position, but have been through the process with organisations on many occasions means that they are best-placed to understand the requirements that are unique to you, and your business.
The times, they are (and already have) a’changing.
You may have undergone a similar process in your career – which makes you feel pretty confident to undertake the same again. But, stop for a second and think about the extent of how times have changed since doing that. Think about this for a second. The first iPhone was invented in 2007. That’s just over 10 years ago. Most people didn’t even have dial-up broadband at the start of the 2000s. Today, entire organisations are run completely in the cloud. The way people buy and sell is moved from the face-to-face, to a click and collect or, even now, click today and deliver today. What you may have known may not even be relevant today, at all. But working with a 3rd party who is dedicated to this part of the economical life cycle means that regardless of your knowledge or experience in a particular process – you can focus on what you’re good at – your business, your product, your service, your team, your customers, and they can focus on what they are good at – while making it all work for you.
The course of true M&A…
We know that the course of true (mergers & acquisitions) never runs smoothly. Potential partners change their mind, or shift the goalposts, expect more, deliver less – and what seems like a straightforward agreement inevitably becomes a negotiation document the size of War and Peace. Unfortunately, what many business leaders who try to manage this process themselves overlook is the important of identifying intent at the start of the process, and seeing a successful conclusion to the transaction which matches that same agreement. Having an outside partner looking out for your best interests means that you get one thing: Certainty. From the letter of intent right through to the transaction, the process is carried out with clarity, transparency – and you know exactly where you are headed, without the buyer wriggling out of agreements and changing the terms you originally agreed upon. And when transaction-time comes along, we recognise that many sellers may have final hesitation as they question the next step. Having a dedicated, and trustworthy partner working with you throughout this process means that you stand firm in your strategy and will help you to get the best result you need, for your business, and yourself.
CFPro Ventures has a highly experienced network of business resources that have walked the Merger & Acquisition journey many times before. Working with us gives you access to a highly-specialist skill set which is dedicated to seeing your growth – in whatever shape that is. If you’re ready to talk about your next step, then it’s time to speak to us today.