Chris Laughton speaks about Accelerated M&A

Even thriving and dynamic businesses can face periods of stress, or distress. This could be the result of cash flow pressures, funding challenges, operational or market issues, or the variety of other threats encountered in a competitive business environment.

When a business faces instability, a tailored strategy supported and implemented by specialists, such as the Mercer & Hole Corporate Advisory Services team, can preserve and realise value for stakeholders. The preservation of value may involve pursuing a transaction that results in the sale of the business and assets. Key to maintaining value in these circumstances is an accelerated M&A process, exploring whether value breaks in the equity, and realising that value, in the limited time available before cash runs out.

Accelerated M&A requires a sensitive approach whilst understanding that speed and managing uncertainty is critical if business value and viability is to be preserved. Typically a transaction which focuses on the rapid sale of the business as a going concern is completed within weeks, sometimes in days, but rarely in months. The combined experience of Corporate Finance and Corporate Restructuring specialists, and access to support from transactional experts in tax and business services, assists with devising and implementing an effective M&A process. Often the sale is run in parallel with other potential solutions to ensure that all options are thoroughly considered and explored.

Our team regularly acts for both buyers and sellers involved in an accelerated M&A process and we are able to provide bespoke advice and support. A prospective purchaser is likely to require assistance with valuing the business, undertaking detailed due diligence, assessing funding requirements, identifying areas of potential risk and/or negotiation support. A seller is likely to require assistance with identifying and engaging with potential purchasers, establishing market value whilst generating a competitive environment in order to maximise realisations, liaison with key stakeholders, ongoing advice and support for the management team and, if a pre-pack is an appropriate part of the mechanism, implementing an administration.

In our experience, accelerated M&A, particularly when used as a consensual solution, will lead to a successful sale and result in the preservation of jobs and survival of the business. If you would like more information on how we can assist, please contact me or Tom Pollard.