What the Internet Says about Making an Acquisition

We’ve sifted through the best articles on what to consider before making a business acquisition and put their advice together in one spot for you. So instead of tossing and turning in bed, wondering which of the 400+ acquisition articles to read next, take a seat here and rest easy. You’re welcome.

Any acquisition includes two parties—those doing the acquiring and those being acquired—and there are dozens of articles across the web addressing each. To be clear, what you’re reading now is for those looking to acquire. So, what do the internet folks have to say about acquisitions?

There’s A Lot to Consider

This is obvious, but every article seems to introduce the idea by reminding you of this. We wouldn’t feel comfortable saying that we’ve given you everything the internet says about acquisition without mentioning this, obvious as it may be.

Yet, with all that’s out there, it can be boiled down to just a handful of categories. There are a lot of details within the broad areas you’ll be working within, but hopefully, we can make the acquisition seem less overwhelming.

Your Purpose

This may be about as obvious as stating that there’s a lot to consider, but it’s necessary to keep your goals in mind when considering an acquisition.

First of all, why do you want to acquire in the first place? Is it because you found a cheap acquisition and you’re excited that you can acquire it, or is it something that aligns with your company’s values, mission, and strategy?

You might also be interested in acquiring a company because it has the technology, processes, resources, products, or talent you want in your company, including supply and distribution channels, software, and more. For example, the company may have an established presence somewhere you’d like to do more business. Whatever it is, make sure they have something that fits into your strategy and is something you actually want.

The People Involved

It was a bit discouraging to find that only one of the many articles we found mentioned people, but we’re glad it’s out there somewhere. When acquiring a new company, understand that you’re also acquiring all of the people who work there. They’ll have serious and valid concerns about their benefits, job security, and other sensitive and highly important dynamics that can come with one’s company being acquired. Making too many changes—or changes that don’t take good care of the people involved—can quickly turn what appeared to be a strategic acquisition into a catastrophe.

People are the most important asset in your company now, and in any company you’ll acquire. Do well by them and you’re likely to do well in the rest.

The Money

This is perhaps the issue you’ll spend the most time considering. Look at the company’s debt, their financial records, their investors, their lawsuits, and their value. Consider hiring an investment banker to guide you through all of this and be sure to do your due diligence in investigating their financial standing. They may be touchy about sharing all of this information, but that’s normal.

Additionally, remember to negotiate. Acquisitions are a big deal, and the price is always negotiable, even if some say it isn’t. Trust us, it is.

The Time

Understand that it’s normal for acquisitions to take 4–6 months or more. Make sure you’re ready to stick it out through the difficult season of acquisition and make sure you have enough space on your plate to take on this enormous project—or make sure that the people overseeing the whole thing aren’t too swamped to add it themselves.

If you’re looking for guidance as you’re considering or beginning the acquisition process, see how C-Level Strategy can help. Give us a call at 855-917-3165 or email info@clevelstrategy.com to get started!

We hope this is helpful as you are beginning to think about acquisitions. And, just because we like you, here are the best of the articles we drew from to put this together for you:

Drafting a Winning Pitchbook
April 18 , 2024

Drafting a Winning Pitchbook

 Your Business Valuation: How to Understand It and Why It’s Important.
March 26 , 2024

 Your Business Valuation: How to Understand It and Why It’s Important.

How to Master the Art of Exiting: Maximize Your Returns in Mergers and Acquisitions
February 22 , 2024

How to Master the Art of Exiting: Maximize Your Returns in Mergers and Acquisitions