Looking to Acquire a Company? Start with Markets First

One of the first questions people ask me about M&A is, “Do you have a list of companies interesting in selling?” But this is the wrong question to be asking.

By the nature of our role as third-party M&A advisors we do hear of for-sale companies, but from experience we have found using list is not the ideal place to start. Most of our clients do not hire us for our connections to for-sale deals. If you are looking for a list of for-sale acquisitions, there are many sells-side advisors who would be happy to provide teasers extolling the benefits of the companies they represent. While you may see some interesting opportunities, this approach is reactive rather than proactive. You have to wait for a prospect to be presented to you and have little to no control over what deals happen to come your way.

Rather than starting from a list of companies, we have found it’s best to take a “markets-first” approach. This demand-driven approach starts with first identifying markets in which demand for your products or services are growing. These will be the best markets in which to acquire. There are a number of benefits to this approach including:

  • Ensuring the company you acquire is in a high-growth market with a robust outlook for the future
  • Aligning your acquisition prospect with your long-term strategic growth goals
  • Gaining competitive first-hand insight through the market research process, further refining your acquisition criteria and strategy
  • Accelerating the acquisition process by taking an active approach
  • Generating more acquisition prospects that meet your criteria

In short, with the “markets-first” approach, you increase your chances for finding the right strategic acquisition for your company.

To learn more about this demand-driven, “markets-first” approach please join our webinar on How to Pick Top-Notch Markets.

How to Pick Top-Notch Markets

Date: Thursday, February 28, 2019

Time: 1:00 PM – 2:00 PM EST

CPE credit is available.

Photo Credit: Juhasz Imre via Pexels, Public Domain