5 Steps for a Successful Acquisition

Acquisitions can have significant effects on growth. However, the outcome of an acquisition may differ greatly based on how it is carried out. The most successful acquisitions employ an established set of steps to guide them through the M&A process.

The first step in the M&A is to establish the motive behind the acquisition. This will give you an understanding dataroomplace.blog/successful-acquisition-management-process/ of the framework that will guide all subsequent decisions and actions. Acquirers who know their motives are more likely to avoid common pitfalls that arise from acquisitions, such as being adrift, rushing into an acquisition before due diligence has been completed, and overpaying for a company that will be unsuitable in terms of both the culture and strategy.

Once you have a clear goal then the next step is to formulate detailed search criteria for potential companies you want to target. This could include factors like industry focus, geographical location, financial health and intellectual property factors. The top M&A firms use a variety of sources to determine potential candidates. These include databases and online portals. They then narrow their list down to “A” or “C” deals.

After a lengthy and sometimes challenging due diligence process comes the final step which is creating a company’s story. This is the narrative that will be communicated to customers as well as vendors and competitors, so it’s important to make sure it’s positive. It’s important to also consider the impact that an acquisition will have on your P&L and your balance account.