Businesses on the Rise
by Tyra Oldham
Businesses seeking expansion or performing mergers and acquisitions (M&A) can scale their companies effectively. A method for capacity building is to build a pipeline and process for seeking ripe M&A opportunities. The work of practices that have access to information such as Lawyers, Funds, and CPAs, are methods for securing deals. Another method is to hire a third-party agent and clearinghouse to provide information. The work of the Black Achievers Business Institute is developing individuals in learning how to think about buying a business. The nature of M&A is strategic, time-sensitive, and economic.
1.Create a strategy for buying a business, including a team and methods for determining the best fit and right company to acquire.
2.All deals and deal flow is time sensitive when letters of intent (LOIs) are needed to secure the right to purchase. Deals are based on the seller’s needs and the buyer’s qualifications and ability to access capital in a timely manner.
3. Every deal and potential acquisition is based on economics. The deal considers revenue, profit, assets, and implied and actual costs that are related to the acquisition.
The benefits of M&A can lead to business success but it is important to understand the elements of the deal while optimizing the knowledge of your team to make sure the acquisition is sound and fruitful.