There was never such demand for making a strong M&A deal. However, recently, we have witnessed a sharp rise in the number of mergers and acquisitions, both domestic as well as international. This resurgence has created a great pressure on the people involved in development of business, accountants, investment bankers and attorneys to find the innovative ways of making a strong M&A deal as early as possible.

Resurgence in Improving Economy; A study performed in this regard indicated that according to most of the people, growing economy is the key element behind this resurgence of M&A deals. Most top executives believe that if you need to grow, you have to adopt acquisitions. This is because companies has performed their best and reached the saturation point. Now for further growth, making a strong M&A deal has become inevitable, so that the company can found new opportunities for complementing products and more sales. Many businesses that are the target of these acquisition hunger companies are witnessing a significant rise in their valuations taking the average purchase price to 7.5 times higher than the EBITDA of acquired company.

Company Making Deal Vs Company Breaking Deal; Importance of making a strong M&A deal is going to further increase in the market where deals are taking place at a very fast pace. Significance of strong deal can be understood by the fact that in absence of an efficient and skillfully coordinated deal that carries lower costs of transactions, a company making deal may well become a company breaking deal.

Two Critical Questions; Making a strong M&A deal requires answers to two very important questions. First is regarding the type of currency the company should use to make the payments. You have three options. Either you can use stocks or you can pay cash. Alternatively, you can also use a combination of both. Choosing the currency is not at all easy. Basic difference is that cash is certain while stocks may fluctuate. Second question is regarding what exactly you wish to purchase. Here you have two options. Either aim at the assets of the company or buy its stock.

For making a strong M&A deal, you must consider few more points also carefully. For example, open communication is necessary for the success of such deals. Every single person involved in making the deal must be able to understand the clearly point of view of others. Moreover, they should know about the roles, need to perform. Information sharing is also very critical point in making a strong M&A deal.