Energy Production and Distribution Services

The Rollup Option. Distributor Deals Mark a Consolidating Industry -- By Paul K. RicheyTwelve Value Drivers Help Ensure Success in Today’s Tough M&A Environment
By Marshall Graham

The M&A process has changed. Today, buyers and sellers are more cautious than ever before. Pre-LOI due diligence is lasting much longer prior to firm deal terms being agreed upon. There is much more focus on forecasted revenues and stable and growing customer bases. Integration planning on paper is taking longer prior to the execution of a Letter of Intent. Finally, management teams, while extremely important in all M&A activity, are becoming much more central to success in today’s M&A transactions.

For buyers and sellers alike, the key to achieving successful M&A transactions, with the assistance of intermediaries, is to identify the value components or "value drivers" of the transaction and then to make certain a plan is in place to integrate these components at the least cost. At FOCUS Enterprises, we assist our clients in carefully evaluating twelve specific Value Drivers when considering a buy-side transaction. Read more...

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