The M&A trends you need to know

By Jessica Salerno, OSCPA senior content manager

Mergers and acquisitions transactions are often complicated, requiring an immense level of detail and nuance that is well-suited for CPAs.

“CPAs give an objective viewpoint on what deals fit rather than pushing transactions through the marketplace,” said Dave Mustin, partner at Skoda Minotti. “The objective is to make sure the right deals are done for the right people.”

Mustin and Ken Haffey, CPA, and also a partner at Skoda Minotti will present their combined decades of knowledge on the M&A market at the May 23 Dayton Accounting Show. They’ll cover an overview of the components of the M&A lifecycle and what steps to take on post-merger day one, among other topics.

“What we’re seeing now is tightening up by the banks on MA or transaction lending,” Haffey said.

Mustin said the shift in power during the transaction process is returning to the buyer.

“They’re getting much more control and much more diligent about what they’re looking for, including better financials,” Mustin said. “There’s a huge wave of sellers coming out of the marketplace and it puts power in the buyer’s hands because there’s a lot to choose from in terms of finding a much more polished company.”

More and more companies are looking to sell over the next 10-11 years, Haffey said, but described it as similar to the beginning of race, where “people have come to the starting line but no one has gotten down in stance to take the run.”

Haffey said they are also seeing more due diligence on the seller’s side to root out any warts before it comes time to present their company to potential buyers. And often as part of the negotiations, sellers are becoming more invested in the company’s success after the sale.

“It keeps things working inside the organization,” Mustin said. “You don’t want the seller to drop the company on the buyer’s doorsteps and say, ‘I’m out of the deal’ and problems come out over the course of six months, this way if there are issues they will be fixed.”

Picture: Right: Dave Mustin; Left: Ken Haffey

Ken and Dave will also present at the fall accounting shows. Register here:

Cincinnati | September 25

Columbus | October 30

Cleveland | November 8