M&A Strategy Guide

Start with why you are pursuing a transaction. Growth, geographic expansion, succession, capability gaps, and competitive defense each lead to a different buyer or seller profile.

Write a one-page thesis: the outcome you want, the timeline, the capital you can deploy or need to receive, and what you will not do.

For buy-side work, screen targets by industry, size, recurring revenue, customer concentration, owner dependence, and cultural fit.

For sell-side work, map the most likely buyer types: owner-operators, strategic acquirers, and financial buyers. Position the company for the pool that can actually close.

Use normalized SDE for Main Street businesses and adjusted EBITDA for lower middle-market companies. Apply current market multiples, then stress-test for risk.

Do not lead with a single headline number. A range supported by cash flow, risk, and comparable deals is more credible in negotiations.

Decide early whether the deal is an asset sale or equity sale, how much cash is required at closing, and whether seller financing, earn-outs, or holdbacks will be needed.

If SBA financing is likely, start lender outreach during diligence. Most clean 7(a) acquisitions take 60–120 days from LOI to funding.

Treat diligence as verification, not discovery. Prepare financials, contracts, customer metrics, and key-person coverage before the LOI.

Write a 90-day integration or transition plan covering customers, employees, systems, and the seller’s role after closing. Retention is often where value is won or lost.