4 Ways to Speed Your Deal Closing

Mergers and acquisitions are crucial for middle market companies as it helps them to increase revenue, reduce running costs, and increase their market share value. However, there are many risks associated with mergers and acquisitions.

There is a need to realize the potential of a merger or an acquisition, in order to drive long term value. Deals that go awry can be highly detrimental to the financial position of the acquirer.

That is something which is not done easily and it requires some form of planning on your behalf. Here are 4 effective strategies a middle market company can implement to ensure that their merger and acquisition deals close quickly.

1. Develop a Strategic Plan

All mergers and acquisitions need a strategic plan which is clearly laid-out and explains how it will be beneficial to the company’s core strategy. This differentiates a disciplined acquirer from an undisciplined one.

For example, the merger or acquisition might bring in new customers and clients or it will place the company in a leadership position in the respective markets. Once developed, use your plan to inform your actions. .

2. Develop an Integration Plan

The deal should only close when the post-closing integration plan is in place. Middle market companies should tailor their integration program according to the nature of the deal, whether the merger or acquisition will be expanding into the same business or whether it will venture into a new market.

This affects the course of action taken such as the organization structure, and which people to retain. It is important to answer these questions before the closing.

3. Set Realistic Timelines

Middle market companies often underestimate the amount of time a deal closing will take. This often leads to stress and unrealistic deadlines. The closing time line should be mapped out through proper project planning to identify any bottlenecks and third party timelines.

4. Build the Right Team

A merger or acquisition deal can be quite daunting for both parties. Acquirers need to ensure they have the right advisors, lawyers and accountants on their side to guide them.

The process can be a volatile one with twists and turns in the road. Outside advisors can keep the process focus and anticipate any speed bumps in the road.