Advance preparation is key to a successful Merger & Acquisition (M&A) transaction for a seller. M&A transactions can be time consuming and stressful for a company and its management team. The following are some important things a company can do or keep in mind to maximize the likelihood of a successful sale, in connection with the sale of a privately held company.
How to prepare for a merger or acquisition
1. NDA. The selling company should insist that an appropriate Non-Disclosure Agreement (“NDA”) is fully signed early on in any talks with a potential acquirer. The NDA should also attempt to incorporate an employee non-solicitation provision.
2. Investment Bankers. The company should consider hiring an investment banker to assist it in the process. Investment bankers can be useful for finding prospective buyers and acting as an intermediary in negotiations. Follow these four tips:
Dispatches From The Front 