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M&A 101 – Be Prepared
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M&A 101 – Be Prepared

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31st Jan 2022

Published Date: 31-Jan-2022
#AccountantSeries

Preparation is one of those things that cannot be done retrospectively.

By exploring exit options with experienced advisors at an early stage the business owner has both the time to implement strategic changes to structures or processes to maximise the value of their business and the preparation to avoid unnecessary last minute due diligence cost and effort when the time comes to actually exit. As you will see further on in this article these are both key to avoiding a total deal failure.

Since CIEX was launched we have offered the same two simple pieces of advice to business owners: For the best M&A deal outcome:

  1. Find experienced Corporate Finance advisors
  2. Engage with them as early as possible

The trigger for this advice is the publication by KPMG of their report “M&A Outlook 2022”. This document delivers a wonderfully accessible graphic insight into M&A activity for 2021 - 2022. It provides expert views of the M&A year ahead while delivering a comprehensive precis of the drivers and issues which affected deal activity in the year gone by.

Pertinent to this blog, is a graph in the section succinctly titled “Deal Failure”. It shows that in 2021 39% of deal failures were attributed to unexpected diligence issues or lack of readiness. This is a pretty hefty percentage which needs to be recognised. Yes, there will always be unforeseen issues, but by using experienced Corporate Finance advisors and commencing preparations as early as possible they can be avoided or mitigated.

The simple truth for all endeavour is that success in any project is largely down to planning, planning, planning (and good advice). Thank you Mark Collins , David O’Kelly and Hazel Cryan of KPMG for providing this excellent M&A insight.

M&A Markets
In 2021 39% of deal failures were attributed to unexpected diligence issues or lack of readiness.

M & A Markets provides access to a marketplace that is unique to any other deal space.

In 2021 39% of deal failures were attributed to unexpected diligence issues or lack of readiness.
– Tim Counihan twitter social icon Tweet

M & A Markets provides professional firms with anonymous access to a national and international network of advisors who specialise in buying and selling businesses on behalf of their clients.


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