Closing the Deal: The Role of Due Diligence in M&A


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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This commentary contains the current opinions of the authors as of the date of publication.  All opinions are subject to change at any time.  This commentary has been distributed for informational purposes only and is not meant to convey a current or past recommendation, investment advice, or a solicitation of an kind.  The opinions and statements set forth do not consider the investment objectives or financial situation of any particular individual or group of individuals. Individuals will need to consider their own circumstances before making an investment decision.

 

Information contained herein is derived from proprietary and non proprietary sources Bainco deems to be reliable; Bainco does not, however, warrant the completeness or accuracy of the information obtained from these sources.