Increasing the Likelihood of a Successful Acquisition or Merger
In today’s environment of global competition, growth from within your company can only take you so far. One strategy is to expand through mergers and acquisitions, to enter a market or acquire innovation capability. It is risky as making a deal a success is one of the hardest tasks in business. So, how can you reduce the risks and increase the chances of carrying out a successful merger or acquisition?
Taking a Risk to Grow
The following four steps are key in a merger or acquisition process:
- Accurate Business Valuation: Calculating the true value of your business or one you wish to acquire is easier said than done. It also has a lot to do with the supply and demand but purchasing an attractive start-up company can stop a competitor from getting its foot in the door.
- Due Diligence Process: Being aware of what to look for and how to find it in the records is essential to an effective due diligence. A large majority of companies want to avoid costly experts and conduct their own due diligence. However, their people often lack the necessary skills for this process. The task is even more difficult when your acquisition target is in another part of the world.
- Integrating Financial Operations and Consolidating Accounts: Merging two organisations can be become a very complex procedure, especially when the merged companies are from two different countries. A well-done consolidation makes it possible for the merged business to maintain accurate financial records and data that are the basis of strategic and operational decisions.
- Integrating the new organisations: The Key to a Successful Merger: Merging two businesses involves managing a whole range of changes. When people in two countries are involved, there is an added level of complexity to deal with. During this stage of the merger, the smart CEO will spend as much time analysing the people issues as the balance sheets.
With experience in a number of key sectors and representation throughout the Americas, Europe, Africa and Asia, Benchmark International can connect you with the right opportunity. To find out more, visit http://www.benchmarkcorporate.com.