There are many exit options available for business owners to help secure their legacy, with long-term growth often being a primary focus.

Amongst the variety of options, acquisitions stand out as an effective way to scale up businesses and provide business owners with a chance to have end-to-end support throughout each stage of the transaction.

Completing an acquisition under the guidance of a single, cohesive team can help your business avoid the risk of miscommunication and a disorganised strategy.

This article explores the importance of end-to-end acquisition support, the benefits of having one team guide your business through an acquisition from start to finish and how this support is the key to a successful acquisition.

Understanding the Multi-Stage Acquisition Journey

There are several stages that make up an acquisition process, typically including:

• Conducting research to identify target: To begin the acquisition process, it is essential to conduct thorough research to identify your potential target business.
  

• Due Diligence: After identifying your target business, the next step is to carry out due diligence. This will analyse the seller's financial, legal and operational situation in detail to help you secure a potential positive investment.
  

• Valuation: Following on from due diligence, valuations are an important step within an acquisition process where assessments are conducted to examine the seller's business' assets.
  

• Negotiations: Negotiations are the pivotal stage where both parties discuss and finalise the terms of the acquisition, making sure that the final and agreed terms are fair.
  

• Final stages of acquisition: The final stages consist of both parties completing the acquisition once negotiations and all legal and financial formalities have been completed - marking the deal as officially closed.
  

• Post-acquisition integration: This monumental phase involves both parties joining together successfully, amalgamating their assets and aligning goals to help maximise the value of the acquisition.
  

Each of these steps require specialist expertise and knowledge from industry professionals who help navigate the deal to ensure a fair result - which is instrumental for both seller and buyer.

According to an article by Corporate Finance Institute, an M&A deal consists of many stages that require attention and careful structuring. To avoid complications, having an expert team by your side throughout the transaction will help you avoid any pitfalls along the way.

When researching target companies to acquire, it's important to find a business that aligns with your long-term goals and vision. Enlisting the help of a team with expertise when conducting thorough market research is key, as their guidance and advice will ensure you select the right target for your business - therefore reducing the risk of misalignment regarding your goals.

Having financial, legal and operational experts by your side - to assess your target business's legal and financial health as part of the due diligence stage - will help you avoid any potential pitfalls and critical risks which could cause significant challenges post-acquisition.

To avoid miscommunication during the negotiations stage of your acquisition, making sure that your legal and financial team unite and work together will bring you peace of mind in knowing that communication will flow during the process.

The role of the expert team you enlist will be crucial at the closing stage of the transaction to help eliminate any communication gaps, which can often lead to costly delays. To help create a smooth process during the post-acquisition stage, maintaining the same advisory team that has been involved from the very beginning and has an understanding of the intentions of all parties will ensure a smooth integration.

To ensure you reap the rewards of long-term growth, it's important that you embrace the advice from legal and financial experts during each stage of the transaction for a seamless process. Communication during these stages is key, and by having a cohesive strategy and end-to-end acquisition support, you can prepare a successful deal.

Why One Team of Experts from Start to Finish Makes a Difference

The importance of selecting the right acquisition team for your business is an area which often gets overlooked, but there is more to it than meets the eye as it plays a pivotal role in the outcome of your transaction.

An article by DueDilio examines the importance of choosing the right advisory team for your business, as it creates a solid foundation for your acquisition and sets you on the path to success. The ideal acquisition team needs to include a variety of experts who bring a diverse skillset and knowledge to the table, with the key roles including:

• Legal advisors: Appointing legal advisors will help make sure that all contracts and compliance matters are addressed ahead of the transaction.
  

• Financial analysts: The role of financial analysts is to help evaluate and assess the profitability and sustainability of your target company.
  

• Operational experts: Operational experts help identify the strengths of your business and the target company, through current operations, to ensure a smooth integration of both parties post-acquisition.
  

• Strategic consultants: Strategic consultants have an important role during the acquisition process, whereby they make sure the acquisition aligns with your long-term business goals.
  

• Project Manager: With a critical role of overseeing the acquisition process and ensuring team alignment, Project Managers have a responsibility of making sure no steps get overlooked. Their roles include monitoring the coordination of various experts within the team, making sure consistent advice is present along with ensuring the acquisition stays on track from beginning to end.
  

Consistency is crucial when it comes to the acquisition process, and having a unified team support you from start to finish produces stability and continuity during the execution of the deal. The acquisition journey can be a long and complex one, especially for first-time acquirers. So enlisting the help from one team, with invaluable knowledge and expertise, encourages continuity for the transaction and will set your business up for success.

One of the key things that cements a successful acquisition is maintaining the same expert team that guides you through each stage of the transaction. This will make the process much simpler given that the team will be fully aware of your business's long-term goals, history and will have gone through every stage with you by offering tailored advice. Being supported by a united team, with a deep understanding of your business which will have been developed during the transaction, will allow the team to address any potential challenges ahead of the acquisition.

An additional benefit of maintaining the same expert team is that it encourages quicker decisions to be made and promotes efficient negotiations, due to the team's familiarity with your business.

A team of legal, financial and strategic experts working under one umbrella to provide the end-to-end support you need will produce a cohesive system and consistent flow in preparation for a successful acquisition. Keeping your business' goals and vision in mind, the team can provide consistent advice and expert guidance according to what your business requires - without running the risk of providing you with conflicted advice.

The advantage of having a team of experts collaborate under one roof to create a successful acquisition for your business is knowing you are being guided by a stable team, with constant communication and every decision made in unison.

The Dangers of Switching Advisory Teams Mid-Process

A recent article by M&ACommunity highlights the importance of having one advisory team collectively working together to create a successful transaction for your business, and how to overcome challenges when building an advisory team.

However, changing experts within a team, or introducing new experts onto your team, halfway through an acquisition transaction can bring a handful of new risks and challenges to the table. This can include the loss of continuity which can pose serious and long-lasting consequences to the outcome of the acquisition.

Communication is key to a successful transaction, but switching between advisory experts during the process can lead to issues. If new advisors are brought in to join the team after the start of the acquisition process, an adjustment period is expected to take place for them to familiarise with the work already completed and be brought up to date. This can often cause delays in the acquisition process, mistakes being made regarding unforeseen tax implications for a target business and contract negotiations. As acquisitions are a highly time-sensitive transaction, changing your team halfway through the process can also pose the risk of increased costs or jeopardising the acquisition process completely.

Making changes within an already formed advisory team can also lead to a business receiving inconsistent advice from newly introduced advisors. This may be because the new advisors do not fully understand the rationale behind earlier decisions made in previous milestones, posing a risk to business owners - especially first-time acquirers. Altering your advisory team midway can lead to conflicting strategies and confusion between the original advisors and the new advisors - risking the success of the deal.

How to Select the Best End-to-End Acquisition Support

Having one advisory team support your business during an acquisition process is important, but selecting the right team for your acquisition is equally important for success. An article by Avondale analyses the essential factors you need to consider when choosing your advisory team, as this will elevate your business to the next level. When evaluating potential advisors, it's crucial to consider:

• The amount and quality of experience within the advisory team
  

• The team's knowledge and expertise
  

• Their track record regarding successful acquisition transactions of similar size business to your own
  

• The team's approach and if it aligns with your business's strategic goals and vision
  

• If there is clear communication and understanding of your vision within the team, so that you can feel confident in appointing a team which will provide the guidance that you need
  

• The range of acquisition services that your chosen advisory team provides, such as financial analysis and post-acquisition integration, which will put you on the right path for long-term success.
  

Conclusion

Acquisitions can be a daunting process for businesses, but having end-to-end support from a unified advisory team can make a huge difference to the success of your company.

If you are ready to take the next step in growing your business through an acquisition, choosing the right team of advisors to help guide you through each stage of the process from beginning to end will allow you to avoid unnecessary pitfalls. With the right team of advisors equipped to help navigate you through the process, you will be able to meet the needs of your business objectives and long-term goals.

GS Verde Group offer expert and bespoke advice to support businesses through each stage of an acquisition to reach long-term success. Our multi-discipline team will navigate you through the process to ensure negotiations run seamlessly so that your business has a successful acquisition.

At GS Verde Group, we specialise in helping business owners navigate the complexities of exit planning. Our tailored advice ensures that you are equipped with the knowledge, understanding and support needed to make informed decisions at every stage of the process. Whether you're considering your exit strategy or ready to start acquisition negotiations, we are here to help you exit with confidence and integrity.