Election cycles, such as the upcoming 2024 Presidential election, can cause business owners, investors, and advisors alike to take a step back in preparation for the unexpected. Each political party typically proposes a variety of new policies that can influence the broader economy and change existing M&A-related regulations.
Uncertainty, overall, is typically the most significant deterrent for M&A activity. However, it’s imperative for business owners considering selling this year to truly analyze the market and understand how a newly elected candidate or political party could impact their specific sector.
Acquisitions that can catapult business transformation and strengthen overall business success and valuation, as well as divestitures of areas not serving the business, are key to consider this year. While many decision-makers are taking a wait-and-see approach, business leaders who are taking action now may gain significant advantages.
Higher capital costs have recently been a catalyst for many companies to explore creative solutions to achieve their goals. Joint ventures and minority investments are just a couple of ways that leaders are still doing deals, enabling them access to markets without full-scale acquisitions and providing owners with new sources of revenue.
Despite the uncertainty, it’s critical for companies to continue moving forward to achieve their short and long-term business goals. Expecting the unexpected and examining the complete competitive landscape is critical. Conducting comprehensive due diligence and weighing out all risks will help ensure successful decision-making and outcomes.
Advisors, such as the Aberdeen Team, can help with the due diligence process, enabling business owners to make the best possible decisions. Additionally, working with an experienced advising team this year will help business owners plan for the future more accurately.
A stellar advising team like Aberdeen ensures business owners can meet their personal and professional goals, whether they are planning on selling or want to make strategic moves that enhance their company’s long-term value.