The latest edition of our weekly M&A Digest includes articles discussing: how to sell an IT services company; the anatomy of a deal; the common motivations of add-on acquisitions; and key M&A pitfalls that you need to be on the lookout to avoid.
How To Sell An IT Services Company
If you own and operate an IT services company, depending on the niche your company is in, now could be a great time to look for buyers. The first step in determining if your company could be of value to buyers is to hire an M&A advisory firm.
In some industries it is quite possible to sell your company for the most profit on your own. However, in the IT services field, the complexities of the deal almost make an M&A advisor a necessity. There are several compelling reasons why M&A advisors are vital to closing optimal deals in the IT services industry.
To read the full article, click here.
Key M&A Pitfalls
To help the business community understand this issue, we have compiled these mistakes into five major categories. These five mistakes can be summarized as follows:
- Mistake Number One: Not knowing the true value of your company
- Mistake Number Two: Not having your documents in order
- Mistake Number Three: Selling to a buyer unwilling to pay a premium
- Mistake Number Four: Not structuring the deal in your favor
- Mistake Number Five: Closing a deal when the timing isn’t optimal
To read the full article, click here.
The Anatomy Of A Deal
Again, because privacy was so critical to our clients, a special confidentiality agreement was crafted for Maxum.
Given our clients unique business model (Beard Oil has a higher gross profit than typical distributors and a significant share of the oil and gas pipeline fueling market), Maxum agreed to sign our confidentiality agreement.
Keep in mind that this type of negotiation requires great skill. Deals fall apart all the time over issues just like this. The ability to keep a potential buyer in the game despite an issue such as this speaks volumes regarding our dealmakers skills.
To read the full article, click here.
Add On
We are often asked: What is the primary motivation behind most acquisitions? Since the impetus behind each deal is different, it is nearly impossible to come up with an easy answer to this question.
Ultimately every buyer enters the acquisition process with a goal or several goals in mind, so we thought we would share with you some of the common motivations behind “add-on” acquisitions.
To read the full article, click here.