The information revolution has yielded a new benefit for the merger and acquisition community that can have significant impact on the decision of whether or not to move forward with a deal as well as ensuring the deal succeeds in the long term. In the past, PR/communication agencies were often called in only after the deal was done and to promote and manage message delivery to key audiences and ensure a smooth transition. However, smart advisors are using those resources much earlier in the due diligence process to conduct a “reputation audit” and achieve benefits including:
'Learn-Improve-Deal' is the AM&AA's new collaboration framework. One way to start using this is to conduct a pre-due diligence quality of earnings (QOE) to help establish a win-win-win attitude in a new professional relationship. This also has the added benefit of helping a business owner understand the complexities of the sales process.
Estate taxes often come up when talking with business owners and other clients as they think about retirement and leaving the business. The sale of the business translates the owners’ biggest asset into cash. The dollars can be considerable and it follows that the taxes on the sale, and ultimately their estate, can likewise be substantial. Concerns about taxes are valid. Currently, the threshold for an estate tax is an estate value of $5.49 million for a single person.
Congratulations—your M&A transaction went off without a hitch, and you’re now the proud owner of a specialty chemical manufacturer. Included with your purchase are any inherited environmental liabilities of your new portfolio company—contaminated soil or groundwater on the property, underground storage tanks, or chemical releases, for example.
Executive Summary - Phase I Environmental Site Assessments (ESAs) are often used as a means to consider environmental liability prior to acquisition of real property.
I work with many different types of family businesses and family dynamics in this line of work. One specific client has been on my mind this week, wondering whether they’ve gotten traction on a key recommendation we provided.
This family business is not so unusual. There are multiple generations involved in the business. The patriarch is in his 80’s. His three children are all in their 50’s. The grandchildren range in age from high school to late 20’s. The patriarch and his spouse hold majority control with the remainder spilt equally amongst the three adult children.