Roadblocks to a Successful Merger

Are you planning a merger or acquisition? Bill Carlino’s new article, “Common M&A Roadblocks Your Firm Can Avoid,” offers some helpful advice. One issue that can affect the process is the prospect that not all stakeholders can become equity partners. “A strategy to circumvent this,” Carlino says, “is to hold them out to the public as a partner but give them an eventual path to equity in the successor firm.”

Make sure both parties are compatible with what Carlino refers to as “The Four Cs.” These are:

• Chemistry
• Culture
• Capacity
• Continuity

Carlino warns against a pitfall that is becoming more prevalent: “Don’t fall to the common temptation of merging with a larger firm simply because they’re bigger. Remember, bigger isn’t always better. Better is better.”

To read more, see the full article from AccountingWeb.