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M&A Success - Hire a Team

By Generational Equity

Teamwork Hill

A few weeks ago I discovered a helpful document entitled “Before the Deal: A Checklist for CEOs.” Designed and created by the people with Axial, it is a nifty tool for business owners contemplating an eventual exit.

Since many of you are too busy to read the entire document, I want to highlight one item on the checklist that is really vital from our experience, hiring an M&A team.

Create a Deal Team Comprised of:

  • An M&A advisor or investment banker – An expert who can guide the transaction process
  • M&A Attorney – A specialist who can protect your legal interests
  • Board of directors – Team who can advise on strategy
  • Finance team or accountant – Specialists who can protect your financial interests
  • Wealth manager – Guide financial transitions from a personal perspective
  • Internal team members – CEO, CFO, CMO, COO, etc.
  • Other transaction or industry-specific consultants as needed

Some of you may look at this list and say, ‘Wow, what overkill! I don’t need that many folks advising me. I have successfully run my business for 30 years.’ That may be true, but you need to view your business as you do your healthcare. You see a specialist for many things: Dentist for dental work, optometrist for eye care, a GP for annual physicals, a pharmacist for your medication, a cardiologist, a proctologist, a psychiatrist, etc. Each plays a vital role in your wellbeing. You wouldn’t see one medical professional for all of these. It’s the same with the successful sale of your largest asset.

A team like this will ensure that not only do you get an optimal deal but you get one that protects your financial interests. If you can’t afford all of these, the three most important are an experienced M&A advisor (like the Generational Group), an M&A attorney that has done a few deals, and a wealth manager who can help you post sale with a wealth protection/growth plan that meets your needs.

Are you considering an exit plan in the next few years? Do you have a team in place? The reality is from the moment you decide to begin the process until the day the deal closes can take 9-18 months or even longer in some cases.

Start the process long before you want to exit by hiring a team. You will be glad you did!

By Carl Doerksen, Director of Corporate Development at Generational Equity.

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