An acquisition is a major turning point for a company. Yet, it’s one of the less talked about and discussed topics in the lifespan of an organization. To complete a successful business acquisition, you need to plan ahead.
An acquisition can be an arduous and intricate process depending on the size of your company and that of the one you’re acquiring.
Six Musts for a Successful Acquisition to Grow Your Company
1. Don’t rush it
The first key to a successful acquisition is having a plan.
Your goal during an acquisition should be to facilitate a natural integration of two companies. If your roadmap to success isn’t thorough, you may want to slow down and take more time to plan.
Consider what is important to make the transition smooth, as well as potential hurdles.
2. Stabilize your finances
How much are you willing to spend on an acquisition?
Your company must be in a healthy place (financially speaking) before even considering an acquisition. An acquisition isn’t a quick solution to low revenue and growth; your firm must have the financial capacity to acquire.
3. Identify companies that can fill your needs.
When your company is ready to make an acquisition, consider companies that can fill a void you’re currently lacking.
Where are your biggest opportunities for growth? What are your drawbacks?
Consider the time frame you’ll need to integrate new products/services, as well as how long it’ll take you to truly be competitive in a new market.
Ideally, an acquired company should bridge the gap between what your company is lacking and the growth it wants to achieve.
4. Respect your acquisition like a marriage.
An acquisition should be mutually beneficial. That is, the company must be acquirable with an owner open to buying and within your financial means.
Meet with companies that fit this criteria, but also consider less tangible factors such as vision, values, culture and people.
A successful acquisition has to make sense on more than just paper. Create a list of questions that target leadership, communication, team development, etc. and assess how your two companies align.
5. Timing is everything.
An acquisition is a lot of work. The time to integrate teams, visions, processes, clients, culture and so on requires considerable energy and dedication.
Aside from having the financial means, your company must have the time and capacity to manage an acquisition. That is, can your team handle the workload and maintain day-to-day operations?
An acquisition will expend all your time and resources.
6. Prioritize communication.
Communication is of the utmost importance, not only among your team, but also with the leadership and team of the company you’re acquiring.
For that reason it is so important to understand how the other company communicates before taking on an acquisition.
Everyone needs to be on the same page, so you’re not struggling against buy-in. (Read more on this topic: Include Your Team in Change Management to Gain Buy-In)
We Specialize in Merger & Acquisition Services
We can help your business manage the technology environment during your Merger or Acquisition.
Our executive experts work with either a target or acquiring company as it is positioning and preparing for an acquisition, a merger or divestiture.