Why it’s key to hire a CPA for mergers and acquisitions.
In mergers and acquisitions (M&A), you know it’s not just about signing on the dotted line—it’s about building the foundation for a successful future.
Whether you’re gearing up to sell your business or planning to acquire another, the stakes couldn’t be higher.
You might be asking yourself the following:
How can I ensure the best possible financial outcome?
How do I avoid financial pitfalls that could derail my deal?
The truth is, while many business owners focus on the big payoff, it’s the details that often make or break the deal.
You need a solid financial game plan, an understanding of the complex landscape of M&A, and the right partners to guide you through it all.
That’s where working with a qualified CPA firm comes in, helping you prepare for every stage of the transaction—from pre-sale readiness to post-deal success.
Why You Need a CPA for M&A
Mergers and acquisitions are a complex web of financial, operational, and compliance-related tasks. You don’t want to go it alone, especially when your hard-earned business is on the line.
A seasoned CPA firm can bring the financial expertise you need to navigate these intricate stages and safeguard your interests.
When you’re preparing for a transaction, financial preparedness isn’t just important—it’s essential. Bringing in a qualified, independent CPA ensures impartiality and credibility in your financial statements, giving potential buyers peace of mind.
This level of transparency and accuracy de-risks the transaction for everyone involved.
When hiring a CPA for mergers and acquisitions, it’s not just about making the numbers look good; it’s about making sure those numbers stand up under scrutiny, so you can move forward with confidence.
Jeanette Roatch, Partner and Director, and M&A expert at Shannon & Associates put it this way: “A proper consultative approach (and getting the numbers right) is so important because if you don’t get the numbers right, it can cost you millions.”
Hiring a CPA for Mergers and Acquisitions: The Critical Role of Financial Preparedness
One of the biggest challenges in M&A is inefficiency, often driven by a lack of internal controls. It’s easy to overlook accounting details when your focus is on growth or day-to-day operations, but as you move closer to a sale or acquisition, those overlooked details can cost you.
At Shannon & Associates, we make sure that your financial house is in order—because, without the right controls in place, you risk losing value.
Have you considered how streamlined your accounting department is?
You might be spending too much or too little in certain areas without even realizing it. An independent CPA firm takes a deep dive into your financials, identifying inefficiencies and ensuring that your company’s bottom line is optimized well before any deal hits the table.
This consultative approach isn’t just about getting the numbers right; it’s about setting you up for long-term success. Another reason why CPA for mergers and acquisitions is so important!
Starting with the end in mind—knowing how much you want to net after taxes and fees—is critical to the M&A planning process.
Surviving the M&A Due Diligence Process
Once a deal moves into the due diligence phase, everything you’ve done up to this point will be put under a microscope. Financial statements, operational records, and legal documents are all fair game.
The risk of a deal falling apart is highest during this phase, and it’s here where your financial preparedness truly pays off. You’ll want to uncover any potential issues during your own pre-sale diligence, rather than having them surface when it’s too late.
After all, surprises during due diligence can quickly tank your deal—and its price.
Working with a CPA who understands the M&A landscape ensures you’re proactive, not reactive. The right accounting team helps you catch potential issues early, so you can address them before they become deal-breakers.
This level of preparation can be the difference between closing a lucrative deal and seeing it slip through your fingers.
During a recent interview between Jeanette Roatch and Craig Dickens, CEO of Merit Investment Bank, Dickens emphasized a remarkable statistic:
“In 2022, only 61% of businesses that entered the market successfully completed their transactions, leaving nearly 4 in 10 unsuccessful. A significant portion of these failures—possibly half—occurred due to breakdowns in financial due diligence.”
Looking at M&A from a Buyer’s Perspective
It’s easy to focus on the top-line number during an M&A transaction, but the true value lies in the details.
You want to know exactly how much you’ll walk away with after taxes, and how your business will look to a potential buyer. Shifting your mindset to that of a buyer or investor is essential for maximizing the value of your deal.
A qualified CPA firm doesn’t just crunch numbers; we help you interpret your financials in a way that tells a compelling story to potential buyers.
Are your financials highlighting the strengths of your business?
Or are there hidden risks that could cause concern?
By adopting this perspective early on and consulting with a CPA specializing in mergers and acquisitions, you’ll ensure that your company looks attractive to the right buyer, and you’ll avoid last-minute surprises that could jeopardize the deal.
Strategic Planning and Tax Implications
When it comes to selling your business, many owners underestimate the importance of tax planning. Waiting until you’re too far into the transaction can limit your options and lead to an unpleasant tax hit when it’s all said and done.
Strategic planning from the beginning allows you to explore tax-efficient deal structures, ensuring you maximize your post-sale proceeds. As they say, “It’s not about what you make; it’s about what you keep.”
Starting with the end in mind—knowing how much you want to net after taxes and fees—is critical to the planning process. At Shannon & Associates, we help you evaluate all potential tax scenarios, so you know exactly what to expect when the deal closes.
“In 2022, only 61% of businesses that entered the market successfully completed their transactions, leaving nearly 4 in 10 unsuccessful. A significant portion of these failures—possibly half—occurred due to breakdowns in financial due diligence.”
Maximize Your M&A Success with Shannon & Associates
When it comes to M&A, the right CPA firm is more than just a financial advisor—they’re your strategic partner. Shannon & Associates works with you every step of the way, from pre-sale readiness to post-sale consulting, ensuring you’re financially prepared for every phase of the transaction.
Our seasoned M&A Transaction Services team collaborates with business owners and consulting partners like investment bankers and private equity groups to ensure tax-efficient, financially sound deals. We understand that your business is your life’s work, and we’re here to help you get the best financial outcome possible.
If you’re ready to embark on your M&A journey with confidence, get in touch with Shannon & Associates. We’ll help you organize your financials, enhance your profitability, and de-risk your transaction so you can focus on what matters most—your future.
For more information about our M&A services, check out our guide on M&A financial preparedness, or watch the video: Middle Market Moment with Craig Dickens and Jeanette Roatch.
