An Investor’s Best Friend in an Active 2014 Capital Market: Robust Internal Controls
It is undeniable: mergers and acquisitions activity is heated, and many middle-market companies are contemplating liquidity events and capital transactions. In addition, Congress is encouraging pro-equity capital formation legislation and the JOBS Act is stimulating public equity capital transactions. Today’s business environment offers opportunity for investors and acquirers looking for viable investments and acquisition targets.
But not all liquidity events are created equal. Some transactions will fail, some will succeed, and just as importantly, some will come to fruition under less-than-ideal terms for the company. Why? While several factors contribute to the successes―and challenges―of a merger, acquisition, IPO or follow-on transaction, a robust internal controls program is one of the more significant items that investors and acquirers should include in their due diligence protocols and sellers should proactively evaluate internally on an ongoing basis.
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