The Rules for a Successful Acquisition

As a business broker, I assist buyers in expanding and growing their business. During the initial search period, I often help them identify potential companies that will be successful and fruitful. Before we begin searching for an acquisition opportunity, the client must answer the following questions to help them understand the six rules of successful acquisitions.

  1. What is the strategy behind this purchase? For an acquisition to be genuinely successful, the acquisition must be based on a solid business strategy, not a financial plan. If it makes good business sense, then proceed with the purchase. If it only looks good on paper and the "numbers" look good, then take another careful look at the reason for the purchase.
  2. Is this about what they offer you or what you offer them? In successful acquisitions, it's not about you and how you benefit from the merger. Instead, it's about how you help the target company improve. Make a list of how your firm improves the target company. If...
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