2
JOHN BRAY, from page 1
below, but a crowded deal team can only lead to mixed opinions and an inefficient decision-making process. 2. Cast a wide net. It is essential to keep an open mind about what types of firms could benefit your organization in an acquisition. You need to define your criteria in a way that is not so specific that there are only 15 total companies on Earth that would qualify. Casting a wide net will give you more “swings at the plate” – statistically it will enhance your odds of speaking to the best possible partner in a transaction. In addition, there is only so much information about private companies (like the ones you are targeting) available online, so limiting yourself to a very narrow search may even prevent you from speaking to firms that do fit your criteria, it just wasn’t apparent online. Lastly, casting a wide net involves always building opportunistic relationships in the M&A world (e.g. companies, advisors, attorneys, etc.), as you never know when one of your connections will one day lead to a prime opportunity. 3. Sell your firm and the future opportunity. This may seem obvious, but you would be surprised how often this gets lost as a priority over the course of M&A discussions. When you can identify a target who is willing to speak with you about buying or selling your firm, you need to nurture and value that opportunity from start to finish. The best possible acquisition opportunities are oftentimes successful companies that are not even looking to buy/sell, so their agreeing to speak with you should be viewed as nothing more than that – a single conversation. It is up to you to sell them on the specific benefits and synergies that you can offer to convince them that it makes sense to move the conversation forward. On the other hand – many buyers will be evaluating multiple firms for purchase, and most sellers will have multiple interested buyers – what are you doing to differentiate yourself from the competition? 4. Be responsive and respectful of the other party’s time. There is an old saying – “time kills all deals” – and it could not be truer in M&A discussions. Make your search a daily priority and respond to all requests from advisors or the other party as quickly as possible. Create a sleek team and efficient decision-making process to push conversations forward quickly. If you need consensus and sign-off from more than a couple people before making a decision, the M&A process will be negatively affected. Taking too long (more than two weeks) to respond at any point has the potential to kill the deal. The other party will lose enthusiasm for the conversation quickly if they feel like the time and effort they are putting forth is not being reciprocated. 5. Be flexible and willing to negotiate. Do not enter negotiations with a “my way or the highway” mindset. Have an open mind about how you can work together to build an offer that both sides are excited about. Has your team differentiated internally between terms that are “wants” and “needs” on the deal? Ask the other party what their expectations are. Ask about the specific terms they would like to see in the Indication of Interest or Letter of Intent. Work with an advisor who has experience working in the AEC industry so you can use industry-specific experience in assembling a term sheet. The important thing to remember at this late stage is that you will likely need to make trade-offs in negotiating a deal, but that is OK because you have properly vetted the opportunity and understand the many benefits that can come from this strategic partnership. Whether you’re on the buy- or sell-side of a deal, Zweig Group’s full-scale M&A advisory team can help you find and evaluate candidates and then structure the transaction – managing the process from conception to the closing table. Click here to learn more! John Bray, CM&AA is an advisor with Zweig Group’s M&A and executive search teams.
Interested in learning more
about the projects and ideas driving the AEC industry forward? Learn more with Civil+Structural Engineer Media.
PO Box 1528 Fayetteville, AR 72702
Chad Clinehens | Publisher cclinehens@zweiggroup.com Sara Parkman | Senior Editor & Designer sparkman@zweiggroup.com Shirley Che | Contributing Editor sche@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: zweiggroup.com/blogs/news Twitter: twitter.com/zweigletter Facebook: facebook.com/Zweig- Group-1030428053722402 Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/year). Free electronic subscription at zweiggroup.com © Copyright 2022, Zweig Group. All rights reserved.
2022 AEC EXECUTIVE ROUNDTABLE This roundtable is a unique opportunity for AEC firm leaders to engage and interact with industry peers to discuss current issues facing firms today, explore industry trends and next practices, and confront the biggest challenges they face leading their firms. See you this June 23-24 in Dallas!
© Copyright 2022. Zweig Group. All rights reserved.
THE ZWEIG LETTER JUNE 6, 2022, ISSUE 1444
Made with FlippingBook Annual report