Failing to prepare is preparing for a low price in an active M&A environment

Rory O'Keeffe, Partner, BDO Transaction Services, featured in The Irish Times special report on Mergers and Acquisitions. Read Rory's extract below.

Owners must forward plan well in advance of bringing a business to market to allow sufficient time to enhance its key selling attributes, the better to attract the right buyers and maximise price, says Rory O’Keeffe, partner in deal advisory at BDO Ireland.

“Consideration should be given to how the business will be valued – will it be on a revenue or EBITDA [earnings before interest, tax, depreciation and amortisation] multiple? And then business owners should focus on maximising this in advance of sale,” says O’Keeffe.

Owners should ideally start preparing their business for sale at least one to two years in advance.

“This time frame allows for comprehensive improvements in financial performance, operational efficiency, and market positioning. It also provides ample time to address any financial, legal or compliance issues, making the business more appealing to potential buyers. By taking these steps owners can present a well-prepared, robust business that commands a higher valuation in the marketplace.”