Merger & Acquisition (M&A) activity is certainly on the upswing, and on its way to reaching pre-recession levels. But how ready are A/E 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 A/E 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 A/E 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
Planning & Preparation (Including Retaining a M&A Consultant)
Research/Identifying Candidates & Making Initial Contact
Preliminary Discussions and Continued Investigation
Negotiations & Reaching Agreement-in-Principle (LOI Point)
Due Diligence Process & Post-Merger Planning
Pre-Closing Preparation: Including Final Negotiations & Documentation
Closing & Announcements Planning
The 10 Mistakes That You Cannot Afford to Make in A/E Mergers & Acquisitions is a complimentary webinar available to PSMJ PULSE members.