The current pandemic-induced economic climate has devastated certain sectors of our UK economy. A few sectors have thrived, and some wide lensed business owners have courageously dug into the adversity, created new revenue streams and discovered opportunity.
Currently, there is a positive trend in HSR regulatory antitrust filings and the setup of SPACs (special purchase acquisition companies). SPACs are created to purchase M&A targets or as an alternative to IPO’s. This all means now is a KEY time for SME’s and alike to start considering opportunities such as merging with or acquiring a new business, particularly with light appearing at the end of the tunnel where COVID and vaccines are concerned.
Whether you’re new or experienced in the M&A arena, we’d always recommend having a trusted advisor or coach by your side – not only to support your decision making but also to have a fresh, experienced pair of eyes overseeing the transition with you.
M&A integration consultancy fees are often not a viable option for medium businesses with up to 250 staff and even less so for small businesses, ones with less than 50 staff and annual revenues under £10m pa. This SME M&A sector often is the domain of the business coaching practice which has coaches who are experienced and well versed in corporate M&A’s, transformation, recovery and integration processes.
Like top sportsman, top business owners recognise that stellar performance requires top coaching and simultaneously normally understand that the post-M&A integration process is critical. Due to Covid, there are a substantial number of distressed companies, especially in the hospitality industry, and these will become soft and willing opportunities.
The main reasons why SME companies use M&A’s as a tool for growth are similar to large companies and include:
1. To acquire complementary products
2. To acquire new markets and distribution channels
3. To acquire additional mass and build economies of scale
4. To acquire new technology or staff capacity, especially in the IT sector
It is common knowledge that M&A’s are fraught with challenges so having an experienced disposal or M&A business coach at your side is seen not only as a positive investment but a powerful risk mitigation strategy. An experienced M&A business coach will guide you through your target search, viability studies, hold your hand through due diligence and ensure that your pre-announcement tasks are well executed. The true value of a good coach will be reflected during the critical integration phase. Having a “been there, done that” M&A coach coaching senior leadership to deliver an innovative post-M&A strategy is key.
Collective, cohesive teamwork is critical to optimise synergy and nurture a climate of trust between the original teams. Key management selection is paramount, and we bring the profiling tools to the table. In order to sustain transformation during the integration process our ActionCOACH Reading & Wokingham coaches focus on:
1. Working towards a common culture
2. Developing the new team identity
3. Delivering best practise principles
4. Maintaining or exceeding performance metric goals
5. Establishing mature meaningful communication practices
Follow up articles will discuss disposal value plans, viability, due diligence, and integration plans for IT, sales, customer relationships, teams, finance and delivery.
If you are considering preparing your business for disposal, wish to sell or launch a new division or are considering growth via a merger or acquisition, you can book a no-obligation discovery call with one of our certified business coaches here>>