Steps For a Successful Acquisition
In the midst of all the buzz about mergers and acquisitions, it can be easy to overlook the many crucial steps that must occur for a business to successfully pursue and complete an acquisition. A successful M&A requires careful planning, a clear communication strategy and an efficient execution.
Start with a strategy. Many companies advance myriad reasons for pursuing an acquisition–purchasing international scale, filling portfolio gaps, building a third leg of the business–but the most successful acquirers have specific and well-articulated ideas about how their acquisitions will create value.
Build an organization. The M&A team should consist of members of the executive boards of directors and management of both the acquiring and target companies, along with outside experts who are experienced in acquisitions. The team will determine the goals of the sale, determine potential targets, and evaluate candidates.
Conduct an in-depth due diligence. Buyers usually request extensive documentation and will interview a number of people prior to settling the deal. It can take a long time for buyers to complete their evaluation, so the seller must be prepared to provide information promptly and help facilitate the process as much as they can. As soon as the due diligence http://dataroomplace.blog/dealroom-vdr-deal-management-software-option process is complete the seller must seek the final board approval before moving forward with the purchase.
Develop plans for integration. It is crucial that the buyer has a team member who is capable of devoting significant time and effort to the integration. This person should possess the required expertise and resources, as well as the ownership in order to ensure that the transition is successful.