The law firm of Goodrich & Reely, PLLC, serves clients throughout Montana.

Don’t make these mistakes during your acquisition

On Behalf of | Sep 28, 2023 | Business Transactions

If you want to be successful in the business world, then you have to be willing to adapt. In some instance, that means letting go of your business as you initially envisioned it. This might occur through an outright sale or a merger or acquisition. But given the complexities of these business transactions, you need to know how to navigate their intricacies if you want to come out with the best outcome possible under your set of circumstances. This also requires you to avoid making some common mistakes.

Commonly made mistakes during a business acquisition transaction

Given the intricacies involved in an acquisition, there are many mistakes that can be made when you’re the selling party in the process. This includes:

  • Not being prepared for the six to 12 months it might take to complete the process.
  • Failing to identify multiple purchasers or give the perception that there are multiple potential buyers, which can drive up the acquisition price.
  • Not implementing a strong non-disclosure agreement when negotiating with various parties, as failing to do so could put you and others at a disadvantage and reduce the price of your business.
  • Having incomplete accounting records that may give buyers a pause when they conduct their due diligence.
  • Not taking tax consequences into consideration.
  • Letting the day-to-day operations of the business go while you try to negotiate a deal.
  • Entering the negotiations process without an understanding of the process or the strategies necessary to protect your interests.

Fully protect your interests during your business transactions

There are several things that can go wrong during a merger or acquisition. To protect your interests, then, you need to fully prepare with an understanding of what the process entails. That might seem complicated, but the good news is that you can have allies on your side who can help you competently navigate the challenges ahead.