IS IT TIME TO ACQUIRE?
The motivation to acquire is as plentiful and different as is buyers, sellers and kinds of deals. The goal of an acquisition is to increase your competitive advantage by gaining:
- New Capabilities: adding new products and services.
- New Customers: expanding the customer base, increasing revenues with higher earnings.
- More resources: adding new and fresh talent, leveraging technologies or processes.
- Or Eliminating Competition: purchasing a competitor, capturing economies of scale.
Entering the acquisition process is much like starting a marriage in that it involves a major commitment and is best embarked upon after carefully considering your long-term goals.
The current Merger & Acquisition Market has swung to a buyer’s market; companies with valuable capabilities, customers and resources are available under favorable prices.
Acquisitions are risky business; certainly a buyer beware endeavor! Review your strategic plan, assemble your team, prepare a time and responsibility checklist, find and evaluate Sellers, conduct due diligence and close the deal. Don’t be afraid to walk away from an acquisition that does not meet your criteria!
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