The Art of the Acquisition...Ideas to think about
Inclusion and exclusion
High alignment with current core business
Not diversifying utilizing skills knowledge
Look for smaller deals and fold them in
Integrate quickly
Allocation of responsibilities
Won`t violate price model
Spend a lot of time post acquisition
Ensure the plan is highly defined
What is the purpose of the acquisition?
What are the demographics of the sector?
3 stages –
· The courtship – managing communication internally and externally. Be cautious of `Deal Fatigue’ get to know the suitors
· The honeymoon – agreed on price and terms avoid mismatched expectations. How will decisions be made going forward?
· The marriage – the first 100 days are crucial and most stressful
Good news – a time for change
Biggest problem – what if things don`t execute?
Assessment -
· Are they ready to grow again?
· Energy; Enthusiasm; Shared vision; Transparency and candour
· Ask a lot of questions in the courtship phase
· What does performance mean to them?
· Rule of thumb grow your Revenues 3 to 5% faster than expenses