UHY Hacker Young | Chartered Accountants

The elephant in the transaction?

21 May 2019

As we reflect on last week’s Mental Health Awareness Week it is often startling to hear the statistics regarding this topic, particularly the fact that approximately 1 in 4 people in the UK will experience a mental health issue each year. With this in mind it is important to discuss the mental wellbeing and stresses involved in undergoing an M&A transaction, particularly for those selling their companies.

This can often be and overlooked component, as many business owners will probably feel that once a buyer has been found, and a suitable offer agreed, it is all plain sailing from there on in. Unfortunately the truth can be far from this as the reality of going through a sale; financial, legal and commercial due diligence can often be the most stressful period of the process.

Add to this the extra pressure to ensure targets and forecasts are hit can result in the potential for higher levels of stress and potential mental health concerns. It is therefore a must for any business owner to take the time to consider these potential pitfalls before embarking on a sale process as well as ensuring they have a level of comfort and belief in the advisor they have chosen to work with.

Furthermore it is imperative that we as advisors try to take into consideration any potential warning signs that clients may be showing and to ensure the human element of any transaction is not forgotten.

Here at UHY we try to offer as holistic a service as possible and feel it is our duty not only to attend to the business needs but also to provide as much assistance with the human element of transactions as possible, within the boundaries of our professional capabilities.

If you have any questions or would like to discuss this issue further, please do not hesitate to contact me or visit our Corporate Finance page.

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