Most people tend to go with their “gut” when making decisions rather than relying on the accurate data. You might think you’re the exception, but studies conducted by psychologists Daniel Kahnerman and Amos Tversky show that “when it comes to decision-making, humans are predisposed to irrationality.” No one likes to think of themselves in this […]

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You may be surprised I’m saying this, but vigorous arguments in your acquisition team can be a good thing. In fact, I would be alarmed if there was never any disagreement over a prospective purchase. Either someone is lying or afraid to speak up, unless your entire team is quite exceptionally in sync. Dissent can […]

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Q: Who is the internal champion on the M&A team? What is their role? A: The internal champion is an important member of your M&A team. Your acquisition team should include people from your own company such as the CEO, CFO, the internal champion, and functional leaders, and external experts such as lawyers, accountants, valuation experts, due diligence experts […]

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This is a difficult question to answer. Of course your budget (in both human resources and dollars) will vary depending on your capabilities and the size of the transaction. Acquisition is a substantial task to take on so ideally you would have at least one person that is 100% dedicated to running the M&A project […]

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Pursuing M&A is a passionate process. Emotions run the gambit from excitement in finding a new deal to anxiety about risks uncovered during the acquisition. I’ve found due diligence and negotiations to be among the most stressful times during mergers and acquisitions. Here are six ways to help everyone keep their cool during these critical […]

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Team meetings are important in order to move forward confidently when it comes to due diligence.  Ideally I would want everyone on your team to be physically together, but I understand in today’s environment that may be difficult to schedule, and you’ll have to be creative to maintain team cohesion. Here are a few suggestions […]

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“Keep your pipeline full,” I often tell clients when speaking about their acquisition prospects. By this I mean that in pursuing M&A you should research 75 to 100 companies. That’s a lot of companies and research, which of course you must record in an appropriate manner. How can you keep track of all your data? […]

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Earlier this month, the Association for Corporate Growth hosted a webinar on “Identifying and Achieving Transaction Synergies and Impacts on the Acquisition Price.” One of the takeaways was the gulf between financial and strategic leaders:  “We often see a disconnect between the financial modelers of synergies and the strategic & operational planners, particularly in large […]

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Buying the right company is essential, but it is difficult.  It may be easier to eliminate the “wrong” companies – prospects with glaring due diligence issues such as theft or lawsuits, or even more subjective issues like a poor cultural fit. However, the decision is not always so black and white. How can you know […]

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With football season starting, I am reminded of the indispensable role of the quarterback. In the same way that a quarterback can lead a football team to victory, your Acquisition Coordinator should lead the Acquisition Team to a successful acquisition. The Acquisition Coordinator’s job is to manage the process and drive it forward. This key […]

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Throughout my blog I’ve stressed the importance of carefully planning your business strategy. While planning is important, your plan to buy, no matter how well crafted, is only as good as the people who execute it. Acquisition is a team sport for two reasons. Practically speaking, buying a company involves multiple skills—more than any single […]

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