Steps For a Successful Acquisition

18 Oct Steps For a Successful Acquisition

It is easy to be caught up in the excitement surrounding mergers and acquisitions. However there are a number of crucial steps that a company must take to successfully complete an acquisition. It is a fact that a successful M&A process requires a lot of time and careful planning, effective communication, and diligent execution.

Start with a plan. 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.

Create a team. The M&A team should comprise members from the executive management and boards of directors of both the target and acquiring companies, in addition to outside consultants who have experience in acquisitions. The team will determine the objectives of the sale, identify potential targets and screen candidates.

Conduct an in-depth due diligence. Buyers usually request extensive documentation and may interview several people prior to settling the deal. The buyer’s review can take several months therefore sellers must be prepared to give information as quickly http://dataroomplace.blog/top-10-finance-bloggers as they can and assist in the process. The seller should seek final board approval within the first few days after the due-diligence process is completed.

Create integration plans. It is vital that the buyer has a team leader who is capable of dedicating a significant amount of time and effort to the integration. This person must have the right skill set, resources and ownership to ensure that the transition is smooth and efficient.