There are many reasons why you might be considering M&A to help jumpstart your company’s growth. However, there are many ways an M&A deal can fail. Houston mergers and acquisition advisory from financial specialists can help reduce these risks for a successful deal. Buy-side M&A advisors can help provide the guidance you need before, during, and after an acquisition.
Houston Mergers & Acquisition Advisory Helps Mitigate Risk
As you may know, mergers and acquisitions are a great way to help facilitate rapid growth for your company. They can help you take over the competition for a larger market share, expand your current market, lower costs, and help you break into new services or products. Mid-market M&A activity has been growing in recent years as it can be an excellent strategy for many companies. Yet, some estimate that between 70% and 90% of all mergers and acquisitions fail.
Houston mergers and acquisition advisory services can help mitigate some of the risks M&A deals pose. With the expertise of seasoned advisors, your business can be better prepared as you consider moving forward with an acquisition, make offers, and begin the transition after finalizing the deal.
There are several common reasons M&A deals may fail, such as insufficient due diligence, inaccurate valuation, culture clashes, and lack of a transition strategy. Guidance from M&A advisors can help you create a strong plan and strategy for each component of an acquisition deal.
Some Tips for M&A Deals
If you’re considering an acquisition to support growth for your small or mid-market company, there are a few things to think about. One of the most important things to identify is your why. Why do you want to acquire another company? Is it for horizontal growth to reduce the competition? Vertical growth to acquire a supplier to reduce production costs? Is it to grab another market, such as another geographic location, through the target company? Really iron out the point of the M&A deal before even identifying targets. This can help give you a focal point throughout the process to help evaluate whether your strategies suit your goals.
Also, make sure you have the right advisory team on your side. Mergers and acquisition advisors can help provide comprehensive services, including due diligence, business valuation, and even Houston capital acquisitions advisory to help ensure you have the funding needed to acquire your target. The right advisors can provide both financial and business acumen and expertise to help you make sound decisions for your company’s ongoing success.
In addition, as you consider each target, don’t just look at valuation and business models. These are, naturally, quite critical for a successful M&A deal. However, don’t forget about the transition process. Consider what a transition would look like for each target company and whether the two company cultures can merge easily. Significant differences can make a transition difficult, no matter how sweet the deal looks on paper, so keep this in mind before you even begin negotiations for an acquisition.
Trusted Business Financial Consultants at Sabre Financial Group
When you need financial advisory and consulting for your business, choose our team at Sabre Financial Group. We offer years of experience for everything from Houston recurring CFO services to M&A deals. Our team helps small and mid-market businesses by providing financial advisory tailored to your goals and objectives. We are here to help you find strategic solutions for your company’s growth and success. Schedule a consultation with us today to learn more.