Around the Web: A Week in Summary
A recent article posted on Business2Community.com entitled “Conducting Thorough Sell-Side Due Diligence When Selling Your Business” speaks on the importance of sell-side due diligence in the business transaction process. While due diligence is often viewed as a process typically completed by prospective buyers in a business sale, due diligence on the seller’s end is also a very important tool to uncover discrepancies, unforeseen risks, or any other previously unseen aspects of a business before a sale.
Sellers should know the answers to questions such as:
- What’s my valuation?
- Why am I selling?
- Can the business run successfully without me?
- Can the buyer finance the acquisition?
- What’s the buyer’s vision for the future?
These are all important questions for sellers to ask themselves in order to avoid unnecessary risk and potentially speed up the transaction process.
A recent article posted on the Axial Forum entitled “How to Avoid Culture Clash in M&A Deals” explores how culture clash plays a part in the failure of mergers and acquisitions and how this can be prevented or limited early on in the transaction process. Disasters like the Daimler-Benz merger with Chrysler in 2002, which ended due to culture clash, can be avoided with careful thought and planning. Taking some of the following steps pre-merger can certainly help to uncover and reveal a potentially harmful situation before it occurs:
- Take stock of differences early on
- Talk to customers
- Rally around the mission
- Communicate the value to employees
- Start a cultural intervention
While culture clash is certainly difficult to accurately predict, the above steps can be taken to help get management thinking about what to look for to avoid a potential M&A disaster.
A recent article posted on Forbes.com entitled “Inside The Deal To Buy San Francisco Landmark Fishermen’s Grotto And Preserve Its Legacy” uncovers the details behind a recent deal that was both culturally and historically significant in the San Francisco Bay area. Fishermen’s Grotto, a fish stand turned 20,000 square foot landmark on the popular Fisherman’s Wharf in San Francisco, went up for sale in 2016 after the owners, second and third generation family members of the original founder, found reason to sell in the current market.
With a tough approval team in place in charge of vetting any potential buyers, the sellers were not going to let just anyone buy their landmark business. Check out the full article by following the link below to understand how a prominent landmark was sold to what turned out to be the perfect buyer.