Many leaders take a reactive rather than proactive approach when it comes to M&A. They often realize that their organic growth is stagnant and they’ve got some money they can leverage, so they decide to make an acquisition. What do they do? They go find for-sale companies or respond to those that have found them. While this reactive approach may quickly yield “opportunities,” they may not be the right ones for your company’s strategy.
It’s best to first figure out what you want to achieve and what you want your company to look like 10 years from now. What capabilities would you like to add? It could be location, technology, brand recognition, etc. After you’ve determined this, then go find the right companies – whether they are for sale or not for sale – to help you achieve your vision. It’s better to spend time finding a great strategic fit than to hit the “easy” button and rush into a for-sale acquisition. Acquiring the right company that matches your overall strategy is worth the wait.