Business Building

Now Is the Time to Acquire Companies: Strategic Insights for M&A Success

As market uncertainty looms and valuations drop to all-time lows, the current climate offers a golden opportunity for strategic acquisitions. With elections and policy shifts on the horizon in Germany, acting decisively now could position businesses to thrive in a post-election economy. Also asking in the end of the article, if the momentum in Canada is as good it is in Germany?

Anyways, lets dig in into some steps to move forward strategically.

Key Considerations for Acquisitions

1. Start with Your Champion

Identify and initiate conversations with the executive you’ve built the most trust with in a target company. Approach the discussion like enterprise selling:

Open with, “I know we’ve discussed how our strengths align with your challenges. If you believe now is the time for partnership, we’re ready to move forward.”
Follow up with questions like:
- “How quickly can your organization proceed?”
- “Are you ready for integration at this time?”

Running this process with multiple viable candidates ensures you evaluate all options while maintaining leverage.

2. Map Decision-Makers and Processes

Once aligned with a key executive, identify the decision-makers critical for final approval. Ask questions to clarify:

Who has ultimate authority—CEO, board, or other stakeholders?
What role does the M&A team play?
What diligence is required, and how long will the process take?

Understanding internal dynamics helps streamline negotiations and avoid delays.

3. Be Fully Prepared

Treat the acquisition process like a sales pitch. Have all necessary materials finalized, including:

Comprehensive decks and demos showcasing your value proposition.
A ready-to-share data room demonstrating professionalism and transparency.

Tactical Tip: Assemble a small internal team to prepare materials and ensure everything is polished before in-person or virtual meetings.

4. Introduce a Deadline

Deadlines motivate decision-making. Be upfront about your ideal timeline to avoid stagnation during diligence periods.

Position your urgency as an advantage: “We’re moving quickly with other potential deals, but we believe this partnership is the best fit.”

Talking Valuation

When the time comes to discuss numbers, two starting points are key:

Sustain or Exceed Your Last Valuation
If your company holds or grows its valuation, frame the deal around future profitability.
Anchor on Investment to Date
If your valuation has declined, reference the cash invested in your business as a baseline.

Regardless of approach, maintain competitive tension by showcasing alternative buyers and solidifying your credibility.

Why Now Is the Moment

The Bundesärztekammer’s recent push to reverse cannabis legalization and the possibility of new regulations for other sectors indicate looming policy changes. Valuations across industries are reflecting this uncertainty, creating rare opportunities to acquire undervalued companies.

By preparing strategically, businesses can not only seize this moment but also secure long-term growth ahead of clearer economic conditions post-election.

💡 Is Canada the Next Frontier for Cannabis M&A?

As M&A activity heats up globally, it’s worth examining whether Canada presents favorable conditions for cannabis companies looking to acquire startups. While U.S. companies rely heavily on debt financing for growth, Canada’s cannabis landscape is undergoing significant shifts that could create opportunities—or challenges—for strategic acquisitions.

📉 Budget Cuts in Canada’s Cannabis Program:
Health Canada’s cannabis program is set to face $20.5M in cuts over the next three years as part of the federal government’s “Refocusing Government Spending” initiative. Reductions include: