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Common indicators of a positive M&A target

Acquiring a business is one of the biggest decisions you can make as a business owner or manager. 

In a new article by Growth Business, Bryan Shaw explains the common indicators of a positive target, including: 

Corporate governance – ‘This is a strong indicator of a good target, evidenced by regular board meetings, appointing non-executive directors and keeping books and records in order’, Shaw says. ‘It also enables any negative issues to be identified early and rectified promptly.’

A passionate and talented management team – ‘This can also make a world of difference as they will be driven to succeed and prompt and responsive to all due diligence enquiries,’ he adds.

Good quality investors – ‘It’s worth consulting the target’s cap table as institutional investor shareholders or other well-known professional investors are usually a sign of a solid business or one with strong potential,’ Shaw concludes.

To read the full article please click here

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at August 2018. Specific advice should be sought for specific cases. For more information see our terms and conditions

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