M&A Insights – Establishing Credibility
Many buyers see the acquisition of smaller businesses as potentially more hassle than for larger ones and therefore it is important to establish the credibility of the business at an early stage. Buyers are generally cautious, especially when reviewing the acquisition of owner-managed businesses. Establishing credibility through the provision of high-quality materials and communications is therefore key to getting initial engagement.
First impressions and personal rapport can play a role here too. People are more likely to engage with people they like. After all, you may be working together with them for a period after deal completion.
Making over ambitious claims, which are not backed by evidence, is an easy way to lose trust. If the M&A advisor is known to the acquirer, so much the better as this will allow a more targeted message to maximise appeal and credibility.