Four Steps for a Successful Acquisition

There’s no denying that M&A is a viable method for companies of all sizes around the world to speed up their growth. The process of buying a business is rife with potential pitfalls which can cause acquired businesses to lose their value. Following these four steps can help you avoid common acquisition pitfalls and make your next acquisition an efficient strategy to grow.

1. Develop an acquisition plan.

Poor planning is one of the main reasons for failed acquisitions. By establishing an acquisition plan prior to the start of your acquisition it will ensure that your company is making the most of its value and is in line with the goals of your M&A strategy.

Typically, this involves creating the list of M&A companies http://dataroomplace.blog/top-10-finance-bloggers to be considered and narrowing the list by the use of search criteria. These criteria could include industry sector size, deal value, market share, and operational scale. Corporate development teams can utilize various sources to identify M&A target companies, including online sources such as DealRoom and LinkedIn trade publications as well as industry associations and databases of investment firms as well as private equity firms.

2. Set up a team that will manage the M&A process.

It is essential that management teams create teams that are led by an executive in the top position who will oversee the M&A from start to finish. This is crucial to ensure that the strategy behind the acquisition doesn’t get lost, and that the integration process is smooth. It is also important to have human resources experts on the M&A teams to calculate the cost of benefits and compensation, as well estimate actuarial estimates for financial and pension liabilities.