How to Prepare Your Company for a Merger or Acquisition

It took a lifetime of hard work and sacrifice to build your company into what it is today. But what happens when it’s time to exit through a merger or acquisition (M&A)? Your industry knowledge is deep, but many business owners lack the expertise to facilitate a successful merger & acquisition.

True North can help you streamline the process, increase profits, and guide you into the next phase of your life. However, taking these essential steps will ensure the M&A process is even smoother.

Prepare a Company Overview

You know what differentiates you from competitors, the solutions you provide, your customer base, and what makes your team formidable. Unfortunately, your prospective buyers don’t. That’s why you must take control of the narrative.

A company slide deck is one way to tell your story. This digital document should communicate your company’s strengths, value proposition, and potential to prospective buyers. More specifically, it should contain:

• A company overview
• Detailed metrics highlighting your financial performance
• A market analysis offering a convincing portrait of your industry position
• A product or service portfolio
• Customer demographic information
• Case studies that showcase the transformational power of your product or service

This is only a starting point. Additional information may include growth strategies, reasons for exiting, future forecasts, and more.

Prepare For a Rigorous Due Diligence Process

Expect the buyer to put your company through an intense due diligence process. Failing to prepare for this will place tremendous stress on management, who, in addition to handling day-to-day operations, will suddenly have their attention divided.

You can avoid unnecessary stress by taking preemptive steps—preparing your financial documents, tax returns, budget forecasts, and legal documents. We also recommend enlisting an experienced M&A expert to assist with this process.

Set Up a Document/Data Storage Hub

During a due diligence process, the buyer, their representing council, and investors will want to review your company’s corporate documents. These may include financial records, contracts, employee information, and more.

To streamline the process (without compromising security and confidentiality), consolidate these documents inside a digital data storage hub.

At this stage, security is critical. Ensure your data room is password-protected, uses a two-factor authentication process, and allows you to:

• Limit viewership based on the user’s status (you may not want to give equal access to every party)
• Track who reviewed documents
• Track which documents they viewed
• Track time—how long visitors spent reviewing documents

Doing so doesn't just protect sensitive company information. It also gives you insight into the prospective buyer’s behavior, allowing you to gauge their interest.

It’s worth noting that this process can be lengthy and cumbersome. To streamline it, we highly recommend working with an M&A expert.

Merge with Confidence: True North's Expert M&A Guidance

True North Mergers & Acquisitions is committed to guiding you through a seamless M&A process tailored to your business needs and personal goals. If you're gearing up for the future and need strategic insights to help you navigate, contact us now. Your first step toward a successful merger or acquisition starts here.