Acquisitions are a crucial business process that has significant impacts on growth. However, the results of an acquisition can vary greatly based on how it is executed. Most successful acquirers follow a set of consistent steps that guide them through the M&A process.

The first step of the M&A is to establish the motive behind the acquisition. This will give you a framework for all future actions and decisions. Acquirers who know their motives will be more likely to avoid the common pitfalls of acquisitions like trying to pursue multiple targets, jumping into the acquisition before due diligence is complete and paying too much for a company that is likely to be unsuitable in terms of both strategy and culture.

Once you have decided on your goal, the next thing to do is formulate detailed criteria for identifying potential target companies. This will include factors such as industry focus geographic location, financial health and intellectual property considerations. The most successful M&A teams use a number of sources for identifying potential candidates, from databases to online portals, and then improve their list to „A“ and „C“ deals.

After a long http://dataroomplace.blog/top-10-finance-bloggers and often demanding due diligence process the final step is to develop an organizational narrative. This is the narrative that will be shared with clients suppliers, customers, and competitors, so it’s crucial to make sure it’s positive. Also, it’s crucial to think about the impact an acquisition can impact your P&L and balance statement.