Many executives don’t take enough time to think about the “why” of acquisition. They focus on conducting research, identifying targets, negotiation with owners and valuing companies and gloss over these grounding questions.
But the foundation of every successful acquisition lies in your strategic rationale. Without this foundation, it’s impossible to guide your endeavors. If you embark on your acquisition search without any focus you risk wasting time and resources pursuing a deal in an inefficient manner. AT worst, you may even end up acquiring a company that is detrimental to your long-term growth goals.
As you begin pursuing an acquisition, don’t get so swept up in the excitement of a deal that you forget to answer this basic question: Why are you interested in acquisition?