It is easy to get caught up in all the buzz surrounding mergers and acquisitions. But there are a number of crucial steps a company has to take to complete and successfully complete an acquisition. A successful M&A requires careful planning, a clear communication strategy, 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.
Build an organization. The M&A team should include members of the executive management and board of directors of both the acquiring and target companies, along with outside experts who are experienced in acquisitions. This team will determine the objectives of the sale, determine potential targets and screen candidates.
Conduct an in-depth due diligence. It is standard for buyers to require extensive documentation and interview a number of people before finalizing a deal. The buyer’s evaluation can take a while therefore sellers must be prepared to disclose details as soon as they can and help speed up the process. When the due diligence process is complete the seller should seek the final board’s approval dataroomplace.blog/successful-acquisition-management-process/ to move ahead with the deal.
Create integration plans. It is essential that the buyer has an executive team member who can commit a lot of time and attention to the integration of the acquired company. This person must possess the necessary expertise and resources as well as ownership to ensure an efficient transition.