Key M&A Lessons Learned from Valentine’s Day

Each year as February 14th rolls around, individuals are looking for the perfect gift for their significant other, friend, family member, or themselves. According to the National Retail Federation, the jewelry business was expected to sell over $3.9 billion worth of product. With so many options as to where to buy and who to work with, purchasing a piece of jewelry can mirror high level business matters such as transitioning your company through an M&A deal. In both cases, there are two important ways a trusted advisor can help you navigate these complex financial transactions and find a deal that you love.

Understanding the marketplace. Whether you’re looking for a simple everyday piece or trying to find the right engagement ring, you may or may not have a general idea of your desired quality and price. In jewelry, most buyers, especially first-timers, head to retail stores and try to go through the whole process themselves. By doing this, they risk missing out on better quality items and a better maximization of their budget. A private jeweler may sound intimidating, but these advisors offer direct private assistance and a wealth of knowledge on the market.  Similarly, M&A advisors level the playing field for entrepreneurs by understanding the rules of engagement and developing the right strategy to buy or sell their companies. These experts help you identify investors, strategic and financial, that are a good fit to fuel business growth and can ultimately secure a better end-result than if you went it alone.

Protecting your investment. Private jewelers offer more than a one-time buyer-seller relationship. Many will be able to assist your jewelry purchases for years to come and help you solve any problems with those pieces that may arise in the future. Although working with an expert might seem expensive, the benefits outweigh the cost when considering the complex nature of the industry. An M&A advisor also helps you manage your investments and protects your best interests. Working side by side with management, advisors confirm that your buy or sell-side acquisition criteria are clearly defined, executable and measurable against future results to determine whether adjustments are needed. They help create a win-win situation for each party and optimize a successful outcome.

Whether in a new jewelry purchase or an M&A transaction, every negotiation is unique and needs to be approached with the proper strategy and insight. Talley LLP is uniquely equipped to provide the technical and managerial expertise to help you plan, negotiate, structure and execute on your buy-side or sell-side strategy.