The right acquisition can dramatically accelerate your company’s growth. If you are struggling to find the right company to acquire, here are three tips to help with your search.
- Every Company is for Sale – Many make the mistake of just looking at companies that are for sale. It is important to remember that for sale companies are just a subsection of all the companies in the world. An owner may not be currently thinking of selling, but with the correct mix of factors like price, strategic alignment and perks most owners can be persuaded. So, don’t stop at the for-sale list and expand your universe.
- Develop Criteria – The key to a successful transaction is identifying the right company to acquire. You may have one reason to acquire, but you must have several criteria for screening the potential buy. Even before deciding on the company you are interested in, take some time to develop criteria for your ideal acquisition target. Without criteria, you may end up with an option that you are only emotionally invested in.
- Share a persuasive story- Finding the right acquisition target can be tough when the other side is not interested in selling. The best way to overcome this obstacle is to convince them that you are the best buyer for their company. Especially with privately-held businesses, where many owners think of their company as their baby, you must take the time to understand the owner and develop a persuasive story. The owner is not going to sell their life’s work to just anyone. Communicate what you as the buyer have to offer the seller and how the acquisition is beneficial to both sides.
Identifying the right company is essential for maximizing the success of your deal because buying the wrong company can derail your growth strategy. Follow these tips for discovering the right targets to help your company grow faster and stay ahead of the curve. Do share your experiences and let us know how these tips helped you and your company.