Closing The Deal: The Role Of Due Diligence In M&A

October 10, 2019

Whitney Clark

KnowledgeSHARE

Gillette Stadium, Foxborough, MA – Justin DuMouchelle, Partner and Chief Investment Officer at Bainco International Investors, was an invited speaker at the 2019 Progress Connect conference hosted by Progress Partners. Justin participated in a panel discussion which educated leaders in the media and ad-tech industries on the key aspects of due diligence behind the close of a merger or acquisition.

For company owners and their management teams, an M&A transaction represents a significant cash payday. Justin shared his expertise on the major structures utilized in a mid-cap M&A deal, as well as the management strategies and personal implications that should be considered before underwriting a life changing deal.

The panel discussed the steps a seller can take to ensure a smooth transaction for everyone involved. Beyond the required legal and financial due diligence, there are important personal and ancillary considerations which Justin conveyed to the audience,“The key is to understand the expectations of what is going to be on the other side of the deal – not just personally, but for your team and your investors. Having a clear understanding of deal terms and what the acquirer’s post transaction plans are for the company is critical to earning the full payout as well as meeting and hopefully exceeding all expectations.”

Business owners typically receive benefits well beyond their salary (health insurance, car payments, travel, etc.). Justin’s remarks highlighted the importance of understanding exactly how a seller’s personal cashflow may change post transaction, particularly if they are not staying with the company. Although this may seem like an obvious step, personal financial planning is commonly overlooked when the founder is laser focused on executing a successful deal while continuing to run their business.

The unique perspectives and expertise of Justin and the other panelists provided an enlightening discussion that was well received by the audience. Bainco was proud to sponsor the 2019 Progress Connect event at Gillette Stadium where over 300 investment leaders, market visionaries and influential CEOs gathered to discuss the impact of transformative technology and human potential on investing and society.

Read More on Progress Connect: Progress Connect | Boston, MA

 

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