How to get your company ‘deal ready’
Mergers and acquisitions (M&A) throughout the UK saw record numbers in 2021 and aren’t expected to slow down anytime soon. According to a study from Ansarada, 90% of senior executives from 50 UK firms across investment banking, M&A, and private equity believe that the number of M&A deals will increase in the next 12 months. With this a trend in 2022, Chris Biggs discusses how both the acquiree and acquirer must prepare for a significant deal that results in success.
The volume of deals has been noticed by professional service and accounting firms, with mid-sized firms taking on many of these large clients and offering more tailored solutions to them. This is an opportunity for these firms to further aid both buyers and sellers in the private sector to ensure neither party falls flat while financial backing is driving deals quicker than ever before.
Professional service and accounting firms are standing as a flexible resource keeping the mergers and acquisitions market afloat by guiding businesses on the key areas of attention both parties must focus on for a deal to be successful.
Chris Biggs, Partner at Theta Global Advisors – an accounting and consultancy disruptor – comments:
“I can see 2022 being a historic year for M&As and other kinds of deals as the large amount of uncertainty melts away that has lingered from Covid and Brexit. It is a perfect storm of returning optimism, loosening restrictions and undervalued firms. When a company is being watched by potential buyers the difference between a successful transaction and an unsuccessful one can happen before a deal is even on the table.
“Companies must prepare their business optics when in the market for a deal by emphasising the message told by the numbers, showcasing their sustainability and profitability, and highlighting their strong second-tier management, ready to take reigns at a moment’s notice.
“Prepping for a deal in the right way also involves further considerations such as reviewing company culture, financial controls and systems, and ensuring personnel stay after the deal is done. Focussing attention on these areas, along with increasing visibility, identifying potential acquirers, and hiring an astute advisor for guidance, will set your business up for success in the M&A arena.”
