WASHINGTON D.C., UNITED STATES, February 10, 2022 /EINPresswire.com/ -- There is a lot of thinking, planning, and action that goes into the merger and acquisition process. Clare Advisors released a new guide for business owners who are considering this path, including seven ways that business owners can prepare for merging with or getting acquired by another company. These consist of the following:

1. Have a system set in place and establish the processes for how the business operates. Preparing these ahead of time can make a sell-side transition smoother as it is easier to show the buyer how the seller’s agency functions on a day-to-day basis. The blog discusses the benefits of procedures manuals and outlines a few examples of questions sellers should ask themselves regarding topics like:

• Monthly workflow management
• Billing process
• Employee payments

2. As a sale transaction moves forward, sellers need to prepare for post-closing growth and everything it entails. They should consider challenges like:

• New client onboarding
• Cultural shifts
• New management
• New accounting and reporting systems

3. Focus on improving profitability and maximizing profit. Sellers want to show historical profitability and should look for ways to streamline and consolidate expenses such as:

• Sales and marketing
• Rent and utilities
• General and administrative expenses

In addition, sellers should also have a hiring system in place before the merger or acquisition.

4. Set up an advisory team before the M&A process begins. Start by getting a merger and acquisition advisor on your team. You will also need a lawyer to negotiate contracts, and an accountant to advise you on financial / tax consequences of a transaction.

5. Continue increasing business performance. Ideally, you want to sell your agency at a time when revenue and profitability are increasing. You want to go through the M&A process when your agency has a lot of momentum.

6. Consider whether you need to establish a senior management team or make senior hires. If you do not have employees who can handle a senior management position, you may want to hire key senior personnel that has the ability to handle a portion of the owner’s responsibilities.

7. Understand the business’s value from the buyer’s perspective. It will allow for a better evaluation of the financial and strategic standpoints of the agency. You need to consider your business’s profitability, scalability, revenue concentration, and other factors to objectively value your agency.

Clare Advisors is buy-side and sell-side advisory that specialized in M&A and financial services of digital advertising agencies, marketing agencies, and business service providers. Business owners or agencies who are considering a strategic merger or acquisition can connect with an M&A advisor by visiting the Clare Advisors website.

John Burns
Clare Advisors
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