dataroomplace.blog/successful-acquisition-management-process/
Acquisition of businesses is a strategic undertaking that can take months (and even years) to fully realize. That’s why companies of all sizes put an emphasis on M&A to deliver growth. While every acquisition is slightly different, there are standard steps that businesses should follow to ensure that the deal has a chance of being successful.
1. Define the strategy.
A solid M&A strategy should include a clear description of the goals you wish to accomplish, including increasing revenue and expanding your client base and exposure to new clients. It also includes a thorough financial evaluation, which includes your current financial status and projections for the market.
2. Conduct searches
Due diligence is an essential part of M&A, and it involves checking financial documents twice and conducting searches on the company’s website to discover tax liens, litigation, bankruptcy filings and fixture filings as well as IP. It is also a good idea to examine the social media profiles of the company as well as review sites and testimonials to get a fuller picture of how it functions.
3. Check for red flags.
Although it’s tempting to look for deals that can “rock the world,” it’s important to be honest about what your goals are and how they will align with your resources, and whether the culture of the target is compatible with your own. Also, you shouldn’t be so enthralled by deals that you don’t pay attention to any red flags you see in due diligence or during the integration and change management process.