Exit Readiness and Deal Structure in M&A

Exit Readiness and Deal Structure in M&A

Key Capital’s Colin Morgan and Katie O'Connell recently shared their perspectives with The Irish Examiner and The Sunday Times on the key trends shaping M&A activity right now.

Two themes defining deal activity right now: deal structure and readiness.

How Deal Structure Is Shifting in Today's M&A Market:

Buyers are applying greater scrutiny to pricing, diligence, and near-term value creation. That's widening the gap between buyer and seller expectations and making how a deal is structured more important than ever.

While global M&A activity continues, the conditions under which deals are completed have shifted. From what we are seeing locally and through our IMAP colleagues, buyers remain active but are increasingly selective and operating with greater scrutiny.

"We are continuing to see more creative solutions being used to bridge differences between buyer and seller value expectations," says Colin Morgan. " This may include more structured or longer earnout periods and/or equity rollovers for sellers to ensure 'skin in the game' for a period post-acquisition."

Working closely with your corporate finance and legal advisors to clearly document these structures is also critical to ensure clarity on commercial terms between parties upfront and avoid any disputes in the future.

Why Exit Readiness Matters Before You Sell Your Business:

Most business owners underestimate the value of being prepared when it comes to selling their business. For sellers, the message is equally clear: the best time to prepare is before you need to.

"Being exit-ready before considering selling also allows the company to take advantage of any unsolicited opportunities that might arise," says Katie O'Connell.

"In the current market, we're seeing a lot of inbound approaches - someone could knock on your door at any time. You may not have been expecting an approach, but it might be a great time to consider it."

The key takeaway: successful outcomes are being driven by preparation, positioning and quality execution.

Read more in the following links:

The Times article – On the importance of exit planning in order to boosts valuation and reduce transaction risks for owners.

The Irish Examiner article – On Strategic focus on value creation: M&A buyers prioritise immediate value and tighter deal discipline.

Contact Us

For further information about the Key Capital Corporate Finance, call us in confidence:

Phone: +353 1 638 3838

Email: colin.morgan@keycapital.ie