Mergers and Acquisitions

At McAvoy & Associates we understand that for companies to achieve growth and expansion they may have to consider a merger or an acquisition.

 

Our Business Advisory team has a particular specialism in mergers and acquisitions for both small to medium-sized organisations and can advise clients through all stages of each of these processes.

Typical problems that we come across

  • Rushing the transaction – Pressures to close the deal quickly can result in rushed decisions and limit the value that the financial and legal due diligence processes should bring.
  • Lack of proper due diligence – Just because a business appears to be successful and is showing a profit, does not mean that it is not without its problems. A successful acquirer will need to find out exactly what is owned, borrowed, leased, and owed before becoming committed to a transaction.
  • Taking on too much debt – Purchasers, typically, enter into a transaction in an optimistic frame of mind. This can lead to misplaced confidence in the target’s ability to generate profits and hence to over-borrowing to finance the purchase. We find that over-borrowing is a common problem. A purchaser may be better off either waiting until sufficient funds become available to purchase without significant debt or putting together a buying team.
  • Failure to understand the reason the business is being sold – A vendor may explain-away the decision to sell simply by saying that he/she is retiring. It always pays to investigate the background to a sale. For example, a significant competitor could be planning to move into the target’s sector and this could have persuaded the owner to retire.

How we can help

Our experienced business advisory team will:

  • Evaluate the purchase opportunity from a financial and commercial perspective
  • If required, assist with the identification, evaluation and valuation of other potential targets
  • Provide advice on deal-structuring options and advise on the funding options for the transaction
  • Assist with the negotiations with the vendor
  • Provide due diligence services
  • Provide project management from commencement to a successful completion
  • Assist with post acquisition integration