Every business owner has some kind of a strategy to expand the business, and one of those strategies is the corporate process of acquisition. Acquisition is the way by which one company acquires another one that is usually smaller and weaker than it. It is also termed as the ‘take over’ process. So this could be one of the ways to execute your business strategy skilfully.
This process is often spoken about in collaboration with another one called the merger, and together both are known as mergers and acquisitions (M&A). It is a general error to consider both as one and the same thing, though the two are combining process, yet there are differences between the two. The experts who deal with all types of M&As such as Amit Raizada will be able to clearly define and differentiate the two for you.
There is no doubt in the fact that if this process of acquisition is not well planned and executed it can turn out to be a complete disaster and therefore it is important to chalk out the entire process to avoid any loopholes. The veterans of acquisitions, or acquirers as you would call them, take their own time to decide their target properly. They track their targets sometimes for years before making an attempt to acquire it.
It is not necessary that you acquire only that which is put on sale, you should acquire something that you want to acquire. This shows that you are a clear and unique headed acquirer. Your targets should be based on your strategies and surely identifying and executing this is not any easy job for you to do alone. It is hence that you should take the help of your divisional leadership teams and involve them in the task. This renders helpful in the post acquisition integration period.
It is helpful if you could make a rough list of the targets you are interested in, in segments that are desirable to you. The growth areas should be of highest priority to you; it is hence that you will need a clear vision and understanding of the years and trends to come.
Making an acquisition profile could be another way for you to decide on the acquisition. An acquisition profile contains your business profile, the primary activities, the technology that will be used, the ownership, business models, cultural fit, finances, management and size and geography of your existing business. This should hold in comparison to the unique features of the acquirable property in question.
The entire process of both an acquisition and a merger are rather difficult, which if not handled by capable and efficient people like Spectrum Business Ventures’ CEO Amit Raizada , is bound to fall flat on the face and along with it the entire business. It is hence best to seek professional help for the purpose and decide whether or not you still require help outside.
Establishing and employing an acquisition team is a great way and idea to get more people involved in the acquisition.