When is the right time to consider a merger or acquisition? It has been my experience that in many circumstances the right M&A can save a company or in reality can save and improve the situation of not only one but both companies involved.
Proper research needs to be conducted on both sides. The companies need to not only review balance sheets and profit and loss statements; but culture, management style, employees, sales procedures, etc.
Once you have determined that both companies or a fit, the next question is when. Proper timing is critical in and M&A deal. Slow integration between personnel and systems allows the culture to develop into a single living and breathing new company. If successful the M&A deal will create a stronger more successful business than it was as two separate companies. But word of warning, if the companies do not conduct the proper due diligence or move to quickly to integrate the new business will fail.
The last M&A deal that I conducted spanned well over six months but has developed into a company that is successful even during these difficult times.
Call me to discuss your possible M&A deal before you take action and I can provide you with a free 1 hour consult to discuss your situation…just mention this blog post.