With tight credit and cost pressures driving merger and acquisition activity, according to a recent Canadean report, an expert recently gave tips on M&As that could be helpful to a company that is starting to think about future plans.
Brian Mazar, CEO of American Fortune Mergers and Acquisitions, gave his tips on what owners should consider before engaging in a merger or acquisition.
“Owners should be aware of the inherent conflict that arises with running a business and preparing it for sale,” Mazar said. “Many businesses are run with the objective of minimizing tax liabilities. Unfortunately, the same techniques and accounting practices that minimize taxes also minimize the value of a business.”
According to Mazar, the best time to sell a business is when the business is performing well and future projections are showing positive numbers. The CEO recommended standardizing and documenting all company procedures, eliminating liabilities or liens, and resolving any outstanding litigation that might be pending.
IBM recently completed its acquisition of Varicent Software, which is an analytics provider, in an attempt to enhance the company's smarteranalytics capabilities and possibly reduce costs by creating a more data-driven workforce.
Brian Mazar, CEO of American Fortune Mergers and Acquisitions, gave his tips on what owners should consider before engaging in a merger or acquisition.
“Owners should be aware of the inherent conflict that arises with running a business and preparing it for sale,” Mazar said. “Many businesses are run with the objective of minimizing tax liabilities. Unfortunately, the same techniques and accounting practices that minimize taxes also minimize the value of a business.”
According to Mazar, the best time to sell a business is when the business is performing well and future projections are showing positive numbers. The CEO recommended standardizing and documenting all company procedures, eliminating liabilities or liens, and resolving any outstanding litigation that might be pending.
IBM recently completed its acquisition of Varicent Software, which is an analytics provider, in an attempt to enhance the company's smarteranalytics capabilities and possibly reduce costs by creating a more data-driven workforce.
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