For a small to mid-sized business owner, choosing to sell a business or to consider the option to complete a merger will have very different potential outcomes. This is a new area for many business owners, so finding the right business mergers & acquisitions advisors will be an important decision.
As a general guideline business mergers & acquisitions are typically only considered when businesses have a revenue of at least five million dollars per year. These can still be technically small companies. This designation will depend on the specifics of the company, the number of employees and other factors.
The Differences
A merger is a situation where two companies of relatively similar sizes merge or join to form a new company. This new company is often jointly operated and managed by teams from both of the previously independent companies as opposed to one company simply absorbing the other company or pushing out the other company with regards to management and control.
When talking about acquisitions, a larger or more strategically positioned company absorbs or buys out a smaller company. In some cases, the acquisition is called a takeover and may be seen as an aggressive or even hostile action by one company over another. Typically, in this situation the acquiring company will assume management roles or carefully select which managers from the acquired company will be retained in the new structure.
Finding an Advisor
As a buyer or a seller considering business mergers & acquisitions, it is important to have an experienced and knowledgeable M&A advisor to work on your behalf. These individuals should not just be experts in mergers and acquisitions, but they should have a very good understanding of the industry.
In most cases, the top Minnesota M&A advisors will specialize within different sectors. This is an ideal situation for a buyer or a seller as it provides the advice needed specific to their transaction and their industry.
Excellent Communication and Negotiation Skills
It should be a key factor when choosing business mergers & acquisitions advisors to look for a professional that is able to communicate with you effectively and that has the negotiation skills and experienced to broker the deal.
Talking to the professionals under consideration and assessing their strategy, their ability to value the business and their understanding of the specifics of the industry are all essential before making a choice of professional to represent your business in the transaction.
