It is easy to be caught up in the excitement around mergers and acquisitions. But there are a lot of important actions that a company needs to take to complete go now and successfully complete an acquisition. A successful M&A requires careful planning, a clear communication strategy, and diligent execution.
Start with a plan. Many companies advance myriad reasons for pursuing an acquisition–purchasing international scale, filling portfolio gaps, building a third leg of the business–but the most successful acquirers have specific and well-articulated ideas about how their acquisitions will create value.
Form an organization. The M&A Team should consist of members of the executive management as well as boards of directors and external advisors who have experience in acquisitions. This group will work together to determine the goals of the sale, design candidate targets, and screen potential buyers.
Conduct an in-depth due diligence. It is typical for buyers to request extensive documentation and to interview a number of people before finalizing a deal. The buyer’s evaluation could take a long time, so sellers should be prepared to give information as quickly as they can and to help facilitate the process. Once the due diligence process is completed, the seller should solicit the final board approval before moving ahead with the deal.
Develop integration plans. It is crucial that the buyer has a team member who is capable of dedicating a significant amount of time and effort to the integration. This person should possess the required expertise and experience, as well as the resources and commitment for a successful transition.