M&A checklist: Get the most out of your time

M&A checklist: Get the most out of your time

May 01, 2019
Business Affairs

This invaluable experience can assist with growth in particular areas and reduce the risk of entering a new market, especially with newfound financial strength.

A good partner will be honest and trustworthy upfront to avoid issues later in your partnership. Creativity and good decision-making are also strong qualities in partners, as they will be level-headed, and apt to solve problems and provide some perspective in future analysis and expectations.

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How to approach a buyer
To create a beneficial partnership, you must do your homework to determine the best options. A serious buyer will have the type of business line they want in mind and know why they want it. They’ll also know the size of the business or line they would like and, in turn, have a specific price in mind. You will want a buyer with experience and examples so you can quickly determine if they have the skills to help make your business more profitable.

Be diligent with your records and provide accurate profit and loss statements, your current balance sheet, insurance policy, tax returns for the past three years, a confidentiality agreement, and supplier and distributor contracts.

This information will help determine if the buyer is able to purchase your business and will provide them with its financial value. Being prepared with proper documentation will reflect well on yourself and business, but be aware that the buyer may request confidential information such as a patient list. They are only performing their due diligence by learning about their potential investment. Thus an NDA or nondisclosure agreement is necessary.

M&A can feel like a very time-sensitive business, especially when you’re looking to sell for an injection of capital or buy to expand your business and your profits. Capital is the common denominator, but taking the time to ensure you’re prepared to get the most out of your M&A activity will go a long way.

About the author: Amanda Baethke is Corporate Development director at Aeroflow Healthcare.

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