01 Jul 10 Common M&A Mistakes to Avoid (#1 of 10)
An M&A deal is a complex, high stakes process that has many factors which can affect its success or failure. In this blog series I will describe ten common mistakes that we’ve seen. Every entrepreneur or executive who decides to sell a business or grow through acquisitions should avoid these common mistakes to increase their chances for success.
1. Selecting the wrong advisor
Choosing the right M&A advisor is one of the most important steps that companies should take when pursuing a transaction. The advisor plays a crucial role in planning and executing the whole process. Specific skills and expertise are needed to make the process flow smoothly and optimize the financial benefits. A lack of experience in managing such transactions, as well as poor industry knowledge, can significantly reduce the probability of success and leave money on the table. Deal making should be a core competency of your advisor, and industry knowledge is important because the more the advisor knows about your industry, the better he can assist you with strategy, targeting buyers or sellers, and making the process more efficient.
Take home message: Select an experienced M&A advisor with relevant knowledge about your industry.