M&a Masters

As a business owner or CEO, you’ve worked hard to build your company for years, if not decades. Unfortunately, says Terry Hill, managing director of public accounting and advisory firm BPM’s advisory practice, the due diligence process in an M&A deal can reveal overlooked weaknesses that can severely impact the valuation and efforts to find a buyer. But you can still get maximum enterprise value and have a successful exit, says Terry. You just need to do the right prep work.

When putting together an M&A deal it’s tempting to focus solely on operations and the financials. But to ensure a smooth transition after the papers are signed… you can’t forget the people side of things and company culture, says Shari Yocum of Ernst & Young’s People Advisory Services Practice in Silicon Valley.

He’s seen a lot of deals in his 25 years as an investment banker, but these days Patrick Crocker, founder and managing director of MHT Partners, specializes in helping owners and entrepreneurs sell their businesses. Let’s face it, you’re an expert in your industry. But what do you know about mergers and acquisitions? Hiring an advisor let’s you focus on keeping the business healthy, while the advisor repairs problem areas and finds qualified potential buyers.

One of the newest – and most effective tools – being used in mergers and acquisition deals today is Representations and Warranty insurance. With this coverage, if there is a breach, the insurance company will pay the loss. The buyer has certainty of collection. But do insurance companies actually pay claims?