Steps For a Successful Acquisition

In all the commotion surrounding mergers and acquisitions, it can be easy to overlook the many crucial actions that must be taken in order in order for a company to successfully pursue and complete an acquisition. A successful M&A requires careful planning, effective communication and an efficient execution.

Make 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.

Establish an organization. The M&A team should comprise members from the executive management and board of directors of both the acquiring and target companies, in addition to outside advisors who are experts in acquisitions. This group will work to determine the goals of the sale, determine potential targets, and screen potential buyers.

Conduct an in-depth due diligence. It is standard for buyers to request extensive documentation and speak with many people prior to concluding a deal. It can take months for buyers to complete their evaluation, so sellers should be prepared to give information promptly and help facilitate the process as much as is possible. Once the due diligence process is completed the seller must seek final board approval to move Find Out More forward with the deal.

Develop integration plans. It is vital that the buyer has a team leader who is capable to devote significant time and effort to the integration. This person should have the required skills and resources, as well as the necessary ownership to ensure that the transition goes smoothly and is successful.

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