Chapter 4
Making Sense of the Economics of M&A
IN THIS CHAPTER
Determining when to go market
Recognizing the economic factors that impact deals
Comprehending how companies for sale are a limited resources.
Drafting your M&A plan
The state of the economy and the attendant effects on a potential merger and acquisition (M&A) process is a typical question for business owners as they evaluate their options. Is the market hot? Will buyers pay the highest price? Or have buyers pulled back? Should I wait? The state of the economy also affects the thinking of owners and executives contemplating the acquisition of other companies. So let’s look at some of these factors and discuss how, or whether, they will affect an M&A process.
A mistake that many people make is to view M&A though the lens of one side only — most often, the seller’s side. “How’s your deal flow?” is a question that I am regularly asked. In addition to being a rather annoying, clichéd bit of industry slang, it doesn’t mean ...
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