Why NOW is the time to acquire a company at the most favorable value and how to do it.

Sure, you pivoted and circled back all last year. Now you just want to enjoy the hot summer of 2021. Well, not so fast. This might be just the right time for you to grow and expand your small business operations. The fastest way to double or even quadruple your business may be a merger with a company that’s model, mission, and values are aligned with yours.

As 2020 was coming to a close, the financial markets predicted a very busy Merger & Acquisition season for 2021. As it turns out, the forecasting was spot on. Before we have Interim CFOs alter their careers toward meteorology, let’s make sure your business is ready to dive into the sizzling summer of M&A activity.

According to Kiplinger, there are many primed potential mergers and acquisitions in motion now that the financial world is jumping back after a year of record-low transactions. As companies focus on low capital costs, post-vaccine consumer comebacks, and a rapid acceleration of digital transformation, many are finding that best way to meet growth goals and demands – is a merger.

While you may be wondering if you’re ready to acquire a business and how to measure valuation vs. risk, first make sure you know strong business key indicators so you know what to buy. It’s not only the current performance but knowing how to calculate and project revenue three years out. Plus, now is the important time to step back and factor in the analysis for your company’s potential growth. Should you continue the trajectory of organic expansion within your current market, or would your business be better suited to grow through acquisition into a new market.

This is where you need to call an experienced small business financial strategist to step in and help assess the risks that come with critical business performance and market-determined decisions.  Merger & acquisition advisors are best suited to protect what you have and strategically plan for a thriving future. When you’re ready to buy, buy, buy, make sure you have the best next steps outlined, including:

  • Development of a capital strategy
  • Creation of valuation metrics – for the newly merged brands
  • Negotiation term sheets – agreed upon by the buying and selling parties
  • Definition of your post-merger game plan – start with the end in mind, so you’re always working toward a common goal.

Especially during a busy season with pent-up M&A demand ready to burst, if there’s a deal on the table, you want to be ready to determine, decide, and make a deal as soon as you spot an opportunity to move your business forward. Gather your paperwork, consider working with an Interim CFO to position your business to win out against the competition with the strongest initial M&A proposal. Plus, outsourced financial advisor support will guide you through due diligence and purchase term negotiations. Once you’re nearing the closing table, the expertise of an outsourced expert will ensure business tax strategies are applied to minimize tax obligations and maximize value. Experienced business financial consultants know the metrics to measure before you buy.

A skilled team of experienced Merger & Acquisition advisors are always a smart solution to ensure you’re making sound, strategic business decisions. The Rockridge Financial team consists of trusted advisors with ample M&A experience. If you’re thinking of selling and need a strategy, our high-level financial experts can advise you so you can make a better decision for a more profitable sale. Contact our team to schedule a complimentary 45-minute consulting session to discuss your specific questions, review key business decisions, and gather overall feedback.