Many people begin by listing possible companies to buy. But there’s a far better approach when you’re planning an acquisition.
You start getting excited about a target company that has fantastic financials and is growing exponentially. You imagine the synergies the deal will generate. Success is so close you can almost taste it…but after digging a little deeper, you discover the company is operating in a shrinking market. In fact, over the next five years, demand for this market’s products and services is expected to drop dramatically.
By looking at future demand, you now realize that the company’s past growth cannot be sustained. Your prospect has gone from a gold star to a dog and after all your initial enthusiasm, you’re back at the beginning…Continue reading this post on AMA Playbook.