Due Diligence in Mergers and Acquisitions

     Up until about three years ago, I had no idea what Mergers and Acquisitions was. My only reference to M&A was a movie scene in which Richard Gere in "Pretty Woman" told Julia Roberts he bought companies that were in financial difficulty and sold the pieces of them. Thinking about it now, I laugh at what very little I knew back then compared to my knowledge today. Don't get me wrong, I still have so much more to learn, but I'm for sure a lot more confident in speaking about the subject.     
    So why do business owners/companies sell or entertain the "idea" of selling? Honestly there are so many reasons from retirement, to wanting an increased growth in market share, to owners looking to start a different business venture. Very often, Mergers and Acquisitions come about because companies are in the mature phase of their life cycle. Even with being experts in their field, there’s no way for them to grow substantially once the business has reached that mature phase.   
     What does this all mean to me and how am I involved in the purchases? The main part of my job in the M&A aspect is what is called "due diligence". Due diligence is a process that begins at the time a business is offered for sale or a buyer decides to acquire a new business. In the simplest of terms, my job is to go in and verify that all information given is true. Due diligence is the most rewarding part of the job for me.


    Now here's where I get to all the fun stuff about why I LOVE Mergers and Acquisitions during the Due Diligence process and what it means to me:

1. For every company that we've purchased, I've had the pleasure of getting to know the business owner and their wonderful employees by spending several weeks at a time on site. I sit with every employee and the owners and study what they do and their processes of what has made them successful. I also get to hear how they've persevered during periods of little growth or during big changes that have happened in our Industry. Most importantly I'm building relationships and creating memories that will last me a lifetime.



2. I'm sure you've heard that saying "You never get a second chance to make a first impression". I never EVER lose sight of the fact that I am the first person that employees/owners interact with from our company. I have seen first-hand the anxieties and fear of employees and the owners when a company is in the process of changing hands. I can also easily place myself in their shoes because I myself have been involved in one during previous employment. Life alone can be hectic, which is why putting the sellers and their employees minds at ease is so important to me. By letting them know that we aren't here to make any big changes, I can only hope I'm leaving a good impression or at the very least providing some comfort during a time of transition.




3. Lastly, the "Due Diligence" process is most likely the first time employees are finding out about a possible change in hands of the business. This is where I get to outline to them who we are and what we do and the following is what I like them to know:

"If I could pick only two words that best describes American Lamprecht Transport and who we are, I would say Family-Owned. At American Lamprecht Transport we are steadfastly committed to providing great services to our clients because, to us, our business is about more than just business. It's about family and you, the employees! We hope that if all goes as planned we get to welcome you as well to the Lamprecht Family." 

Written By: Laura Skrobanek