Acquisitions can have an enormous impact on growth. However, the results of an acquisition may differ greatly based on how Find Out More it is carried out. The most successful acquisitions employ the same set of steps to guide them through the M&A process.
The first step in the M&A is to determine your motives for acquiring. This will create an outline for any subsequent actions and decisions. Acquirers who are clear on their motivations are more likely to avoid the common mistakes that come with acquisitions, such as being adrift, rushing into the acquisition before due diligence is completed, and overpaying for a company that will be unsuitable in terms of both strategy and culture.
If you have a clear motive the next step is to develop detailed search criteria for prospective companies. This should include factors like industry focus as well as geographical location, financial health and intellectual property factors. The most successful M&A teams use a variety of sources for identifying potential candidates, from databases to online portals and then improve their list to “A” and “C” deals.
Following a lengthy and demanding due diligence process the final step is to formulate a narrative for the company. This is the narrative that will be presented to customers as well as vendors and competitors, so it’s vital to make sure it’s positive. It’s crucial to consider the impact that acquiring can have on your P&L and your balance sheet.
