Tim Moore, a CPA and M&A advisor, is the managing shareholder of Doeren Mayhew’s Houston CPA firm.

What impact is the unstable price of oil having on mergers and acquisitions in Houston, and what should I be doing now if my industry is being affected?

While M&A activity continues to be strong nationally, we have certainly seen a slow-down for industries related to oil and gas. Regardless of where the business is today, the key is to focus on building value now so you are ready to capitalize on the upswing when it happens. It’s an ideal time to reassess and make improvements to maximize cash flow, garner strong key personnel for the company’s growth and be on the lookout for potential opportunistic acquisitions/mergers in the space, in order to maximize value upon transacting.

As I work to build the value of my business, what are buyers looking for in my management team?

A buyer is going to place value on a management team that has a deep understanding of your industry, the business and what it takes to be profitable. They are looking for management strength as it relates to key areas such as strategy, operations and financials. One of the biggest mistakes we see with some business owners is underestimating the power of a strong CFO. Buyers need to be confident in the financial data before the sale, but just as important, they need to believe that the existing management team can be successful using reliable information to drive business growth after the transaction.

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Tim Moore, CPA, is the managing shareholder of Doeren Mayhew’s Houston office and can be reached at 713.789.7077. For more information or assistance navigating unstable economic conditions when trying to complete a transaction, contact our CPAs and business advisors.