How prepared are AE firm leaders to undertake M&A?

Merger & Acquisition (M&A) activity is certainly on the upswing, and on its way to reaching pre-recession levels. But how ready are AE firm leaders to take on the task of buying or selling?

In a recent webinar, The 10 Mistakes That You Cannot Afford to Make in AE Mergers & Acquisitions,  PSMJ senior consultant Brad Wilson polled his audience, asking them to rate the following from 1-5 (1- Absolutely 5-Not at all): Our management team has the current capacity to undertake M&A.

The results were informative if not surprising. The largest percentage (37%) of participants admitted that their management team somewhat has the current capacity to undertake M&A. Meanwhile, almost 50%, felt that their management team close to if not absolutely has the capacity to undertake M&A.  Good news, however, is that only14% said that their firm's management team has little or no capacity to undertake M&A.  

Wherever your AE firm management rates in terms of its capacity to undertake M&A, a first step is understanding the process. Among the key takeaways of Wilson's presentation were the following: 

The Steps in the M&A Process

1. Planning & Preparation (Including Retaining a M&A Consultant)

2. Research/Identifying Candidates & Making Initial Contact

3. Preliminary Discussions and Continued Investigation

4. Negotiations & Reaching Agreement-in-Principle (LOI Point)

5. Due Diligence Process & Post-Merger Planning

6. Pre-Closing Preparation: Including Final Negotiations & Documentation

7. Closing & Announcements Planning

The 10 Mistakes That You Cannot Afford to Make in AE Mergers & Acquisitions is a complimentary webinar available to PSMJ PULSE members.