15 Questions to Ask Before a Merger or Acquisition

Questions to consider if your firm is contemplating a merger. Although many firms continue to seek merger partners, there are a lot of mergers that occur without the partners exploring all the right issues. This checklist of 15 questions that should be explored was developed by consultant August Aquila of Aquila Global Advisors, and can help firms that are actively (or passively) probing potential merger partners this year.

1. What is the firm's primary reason for a merger? Acquiring talent, increasing profits, and expanding services or geographic coverage are common reasons.

2. How will the merger help the firm achieve its strategic vision? Aquila maintains that you must be able to answer this question-otherwise, there is no reason to merge.

3. Does your firm have an effective leader? Does the merger partner have one? The new, combined firm will need this component to succeed. If both firms are lacking strong leadership, then you will...