R. Shawn McBride recently spoke about being ready and preparing for a merger.
R. Shawn McBride here with you, talking about an important issue too many people ignore until it’s too late. Preparing for a merger. You know, even if your company is not being currently sought after, even if you’re not on the market, if your company’s not in play, you need to be prepared for a merger. And certainly, if your company is in play, you really need to be doing the preparation steps.
What does it mean? It means getting things in order, having a good, clean household. Doing a merger is a lot like getting a mortgage or selling a house. You’re going to have people coming through, checking things out, inspecting things, seeing how things are done, making sure everything’s in order, making sure everything is what you say it is. Same thing happens in a business acquisition. If your company’s for sale, you’re going to be having these issues. And if you’re on the opposite side, if you’re acquiring someone, you want to make sure their financial house is in order and they’ve got a right record. So, preparing for mergers is critical.
We really want to make sure that we’ve got everything in order. There are things out there called due diligence checklists. You can get hold of them, if you haven’t seen them, reach out to me, we can probably get you a form of one. What we’re talking about here is a standardized list of questions and things you can see. Give me all of your corporate records. Give me all of your tax returns. Give me all of your customer contracts. These are very lengthy documents that really go into everything about your business. If you’ve ever had a home mortgage and had that questioning process, this is that on steroids and for your business, so really, really big stuff. But we want to be prepared.
We know that there’s a potential for a merger. We know that at some point we may have to sell the company, either intentionally or because of reactionary. We need to have these things in order so we always want to be prepared for a merger. I’ve had too many clients get caught flat-footed, where they get into a merger process and nobody realizes what’s going on. So be ready at all times, prepare your business.
If you’re running a successful private business and you need resources, go to R. Shawn McBride Fans and Audiences. Tons of free stuff there, along with the McBride for Business YouTube channel. Go ahead and subscribe to both, join us, get free articles and resources over at the McBride for Business blog, the McBride Attorneys blog, tons of stuff for you. Of course, I’m hoping that someday we’ll get a chance to work together. I love working with business owners, taking business to a whole other level, I give out tons of free resources but, of course, there’s a whole other level when we get to work in person. I’m hoping that happens either one on one for your business, or maybe I’ll get to speak at a conference or an event that you’re at. Recommend me to the organizers. I’m R. Shawn McBride, I’ll talk with you again very soon.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer John Evans.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.