Expectations and Goals in Acquisitions

By Adam

When you are going through an acquisition with a good M&A advisor it is important to have a plan of action and set clear-cut objectives for the sale. While you might be thinking of your bottom line, there is a whole range of other objectives that need to be considered because they will impact your team and the company’s future success.

What are the reasons you want to sell the business?
Which acquirer is best suited for you?
What are the exit strategies for the co-founders?
What do you want for your team?
What do you want for your customers?
How will the mission be continued?

Knowing what you want out of the acquisition will give you more control. Have minimum and maximum lines clearly defined, and plan for negotiating, and the unexpected.

Prepare The Team

Preparing the team for an acquisition is another important aspect of keeping control of the process. The buyer needs to fit in with the company culture, or the transition can be painful. Can your team align with the acquirer’s values and beliefs? How can you prepare your team for the acquisition?

Keep your team informed: Never blindside your team with an acquisition if you can help it. Instead, communicate often with your team and answer their questions and concerns. You can also offer them a timeline with milestones concerning the acquisition to put their minds at ease.
Develop a transition plan: A well-developed transition plan will help employees from both companies integrate. While the buyer might have his own plans, such as training plans, company name changes, and more, you can still have an effective strategy for preparing your own team for the transition.
Unify company objectives: Get your team acquainted with the new company’s culture and values, so they know what the new company expects of them when the acquisition occurs.
Be positive: Positivity is a game changer. Don’t let your team get discouraged because it can affect their productivity, and ultimately the valuation and ability to close the deal.

Get an expert valuation

Valuations don’t only let the acquirer know your worth. It helps you to know how to negotiate during the acquisition process. Valuations will help the acquirer understand the startup’s potential for growth and establish a baseline value.

Get your accounting in order

The acquirer is going to tear right through your financials. As they should before making a big purchase. But if you have your accounting in order; revenue, expenses, and assets supported by documentation, the acquisition process will go a lot smoother.

The following are some of the documentation you need to gather:

Past performance: All of your accounting up to this point.
Short-term projections: These include weekly, monthly, and the following year projections.
Multi-year plans: These include 3-5 year projections that give the acquirers insight into the future of the company.