Most owners of privately-held print and graphics communications companies don't share the obsession of publicly-owned companies to "close the deal by year-end."
This is because M&A combinations in our industry are about synergistic benefits such as revenue enhancement and consolidation savings. Financial reporting, accounting, and tax considerations, while important, offer less motivation among entrepreneurial and family-owned businesses as compared to professional managers whose fixation with the stock price drives M&A time frames.
But for those owners concerned about closing your M&A transaction by December 31, here are 5 practical tips based on my experience in advising print and graphics communications clients for the past 20 years:
1. Manage the calendar: Set aside dates and times in advance so as to ensure adequate time for working on the details;
2. Line up outside parties early: Be sure to give a carefully worded "heads up" to outside parties such as your bank that "you're working on something" that is time sensitive;
3. Don't let your lawyer run the deal: Lawyers work for the client, not the other way around. The most common reason for excessive legal fees and unnecessary delay occurs when clients abdicate their responsibility to "run the deal" and "turn it over" to lawyers. There should be simple legal documents and principals, not lawyers, should communicate comments with each other. One round, maybe too, of back and forth, that's it. As a (non-practising) lawyer myself, I know what I'm talking about on this, believe me.
4. Accept that certain items will be resolved post closing: Not every single item has to be perfectly resolved prior to December 31. Trust that the good relationsihp with the other party will resolve open matters fairly in Q1 2011.
5. Get principals and advisors in the same room at the same time: This is my number one "go to" move if a client says we have to get a deal done by a certain date. Preferably, use a conference room (such as the one at NAPL) large enough to hold a group and be sure there are other offices for sidebar conversations. Avoid reasons to leave until a deal is done.
There is ONE MORE recommendation. Can you guess? E mail me (jhyde@napl.org) with subject line "Year End Recommendation" and I'll shoot you a reply with the biggest tip of all.
Happy Thanksgiving.
John
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