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Are you looking for ways to master a merger? You’ve come to the right place. Merging or acquiring another business is supposed to generate value. However, duplicate structures and public criticism often mean that the value takes time to see the light of day. As a business broker, your reputation and paycheck are at stake.

Find out six ways to make sure your merger goes smoothly before, during, and after it takes place.


1. Make Sure the Relationship is a Good Fit

Buying a business (or selling one) is a big step that requires trust. Good communication is also necessary. Not every client might be the right client for you. The best way to make sure every client is a fit is to have a vetting process. Come up with a list of questions and qualifications to identify prospective clients that fit with the way you work. This will reduce friction, prevent deals from falling through, and keep everyone happier throughout the whole process.


2. Do Not Skip Your Due Diligence

Mergers and acquisitions are exciting, but when they go badly, everyone loses. As the “middle man,” it’s your job to make sure no one cuts corners with their due diligence.

Due diligence is a critical step of any merger or acquisition, and it may take some time to complete, so you should encourage all parties involved to have patience. Your client may feel confident in the purchase, but due diligence is a critical process that may uncover challenges and help your client plan a roadmap to success.

Leave no stone unturned. Everyone should be patient and be ready for any issues that may come up as the merger occurs. It’s better to get this over with now than leave the buyer getting caught by surprise further down the line.


3. Make Sure Your Client has Financing Lined Up

Capital can be one of the things that puts a bump in the road to merging or acquiring a new business. One way to stop money from holding the process back is to ensure your buyer has finances lined up ahead of time.

It’s ideal to have a screening process to assist in determining your clients’ financial needs. You should also have a list of trusted lenders or financiers ready to help facilitate a quick sale.


4. Provide Both Parties with a Checklist

Communication and clarity are the key to a pain-free sales process. You can help by giving both parties a merger checklist. Let them know what to expect, how the process works, and what they can do to make things easier.

Checklists bring clarity and allow all parties to prepare for the road ahead properly.


5. Get Documents Ready Early

From nondisclosure agreements to sales documents, a lot of paperwork is involved in a merger. If you wait until the last minute to prepare documents, everyone will be left waiting for you. Instead, draw up documents before they’re needed and make changes as things develop.

Executing non-disclosures early on will also mean that information can be conveyed quickly and decisions can be made sooner.


6. Plan for Success

A merger comes with plenty of challenges. Mitigate those challenges by planning for success. Taking steps to keep control of the process and letting the involved parties know what to expect will keep the bumps to a minimum. When the stakes are big, the plans should be too!


Ivanhoe Is Our Pre-Qualify Go-To!

Be prepared for your next merger or acquisition by getting prequalified with ICA.

At Ivanhoe Capital Advisors, we have over 70 years of combined experience in government-guaranteed and conventional business acquisition programs. Since our inception, we have orchestrated more than $850,000,000 in commercial transactions.

Feel free to use us as a lifeline when you need questions answered about financing. We are here to help brokers and business intermediaries as an extension of their businesses. Our depth of experience helps us support you no matter what industry you’re working in.

When you have been doing this for as long as we have there is nothing we haven’t seen or been able to overcome. Welcome to the Ivanhoe family!