If you are a business owner, you may want to acquire another business to expand your operations. According to the Institute for Mergers, Acquisitions and Alliances, since 2000, more than 790,000 mergers and acquisitions have occurred worldwide.
Acquiring another business can present many opportunities for your operation. But you have to take certain steps to prepare and to elevate your chances of success following the acquisition.
1. Clarify your motivation
Beyond what the final cost of the acquisition will be, determine what value the process will bring to your organization. Consider how the acquisition will affect your company’s brand, future and reputation. Having a clear vision from the start can generate an optimal outcome when you finalize the acquisition deal.
2. Complete your due diligence
Look into the other company’s financials and history ahead of the sales process. Specifically, ensure the other company filed all their taxes, has their finances in order and does not have any outstanding issues that could lengthen the acquisition process.
3. Keep your management team informed
Do not keep the acquisition a secret from your management team. Instead, create an open environment and keep those in management involved. This will help your team prepare for a smooth transition when you finalize the acquisition.
4. Secure major partnerships
You may worry that your major clients will leave when you secure another business. To maintain customer satisfaction and preserve these relationships, let your partners know about the acquisition and update them regularly as the process moves forward.