Why You Should Pursue Markets Before Prospects in M&A

Many people begin pursuing M&A by listing possible companies to buy. But there’s a far better approach when you’re planning an acquisition.

While a prospect company may look exciting today, a closer inspection can reveal it is operating in a a shrinking market. If you’ve invested all your resources pursuing one company only to find its future growth prospects are dim, you’ve unfortunately wasted lots of time and effort. You have to return to the beginning of the process and start all over again. This situation is all to common in my experience, which is why I recommend looking at markets before looking at companies.

The main benefit of a “markets-first” approach is that it allows you to identify and follow future demand. What your customers or potential customers will want in five or even ten years is key to any company’s success.

Learn more about the “markets-first” approach in our upcoming webinar,”How to Pick Top-Notch Markets,” on June 18.

View our full webinar calendar.