QUESTION: Exits and deals: how to prepare for M&A or IPO?

Preparation for major corporate events such as mergers and acquisitions or an initial public offering is a complex, multi-stage process. At the initial stage of preparation regarding exits and deals, it is critically important to formulate clear hypotheses and define key success metrics. Company management must clearly understand what business valuation they want to achieve, who the potential buyer or investor is, and which strengths of the company need to be demonstrated first and foremost.

To test the business's readiness for a deal, it is necessary to conduct a preliminary internal audit. Start by formulating a hypothesis on how the market values your assets and test it through a quick test involving independent experts or consultants. This could be in the form of mini-interviews with potential strategic partners or an assessment of the business's investment attractiveness based on current financial metrics.

Based on the data obtained, management makes a decision on the next steps and adjusts the preparation strategy. If the audit reveals weaknesses in financial reporting, legal structure, or operational activities, the company gets time to address them before official negotiations begin. Such a proactive approach helps minimize the risks of a deal falling through at the final stages.

Successful preparation for M&A or IPO also requires establishing transparent reporting and bringing all business processes into compliance with international standards. Investors and buyers always pay attention to business manageability, transparency of financial flows, and the presence of a long-term growth strategy. Systematic preparation helps not only to successfully close the deal but also to secure the most favorable financial terms.