Many companies struggle to execute successful deals because they lack a strong M&A strategy.
In a survey conducted by the National Center for the Middle Market, 38 percent of middle market companies said that developing the right strategy was their biggest challenge in M&A. That number may actually be higher because often companies react to opportunities that happen to come their way and rush into deals without first establishing a strategy.
Unfortunately, without a strong strategy, it is nearly impossible to execute a successful deal. A carefully laid out strategic plan provides critical focus so you can properly evaluate opportunities to identify the right acquisition that will help you achieve your goals.
If you are struggling to develop a robust acquisition strategy or do not have one at all, here are four tips for getting your acquisition strategy right.
1. Do some introspection
Thoroughly review your own company before you start looking at other businesses. Without a strong understanding of your strengths and weaknesses, how can you be expected to find a good partner? Even if you know everything there is to know about your company, we would recommend going through this exercise with your team. You might be surprised with your findings, and you will have alignment with your acquisition team as you begin developing the right…Click to continue reading on The M&A Growth Bulletin.
This article originally appeared in The M&A Growth Bulletin, Capstone’s quarterly newsletter that delivers essential guidance on growth through M&A along with tips and tactics drawn directly from successful transactions completed in the market. Subscribe today to read the current edition and receive The M&A Growth Bulletin every quarter.