5 Steps for a Successful Acquisition

Acquisitions can have a significant impact on growth. However, the results of an acquisition may differ significantly based on how well it is carried out. The most successful acquirers use a consistent set of steps to guide them through the M&A process.

The first step of the M&A is to establish the motivation behind an acquisition. This will create an outline for the subsequent actions and decisions. Acquirers with a clear understanding of their motives are more likely to avoid common pitfalls of acquisitions like trying to pursue multiple targets, jumping into the acquisition before due diligence is completed and paying too much for a company that is likely to be unsuitable in terms of both culture and strategy.

Once you have a clearly defined goal the next step is developing detailed search criteria for prospective companies. This includes factors such as industry focus geographic location, financial health and intellectual property http://dataroomplace.blog/which-process-can-be-accomplished-with-due-diligence-data-rooms considerations. The best M&A firms use many sources to find potential candidates. These include databases and online portals. They then narrow their list to “A” or “C” deals.

After a long and often difficult due diligence process the final step is to create a company narrative. This is the story you will tell to clients, suppliers, and competitors. It’s therefore important that it be a positive one. It’s crucial to consider the impact that acquiring can have on your P&L, and balance account.