3 Steps for a Successful Acquisition

The acquisition of a business is a long-term strategic project that may take a number of months (or even years) to complete. M&A is a major component of growth for companies of all sizes. While every acquisition is little different, there are common steps that companies should follow to ensure that the deal is likely to succeeding.

1. Determine your strategy.

A well-thought-out M&A strategy should include a clear description of the goals you want to accomplish, including increasing revenue and expanding your client base as well as exposure to new types clients. It also includes a thorough financial analysis, which includes your current financial situation and projections for the market.

2. Conduct searches

Due diligence is a crucial part of M&A. It involves double-checking the financial documents and conducting searches to find out if there are any tax lawsuits or liens. It is also a good idea to examine the social media profiles of the company, review sites, and testimonials to gain a fuller picture of how it functions.

3. Look for red flags.

While the temptation is to search for deals that will “rock the world,” it’s important to be honest about what your goals are and how they are aligned with your resources, and whether the target’s culture fits well with your own. Additionally, you shouldn’t be so eager to make deals that you disregard any red flags that emerge during due diligence or during the integration and change management process.

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