While no two acquisitions are alike, Inc.com provides five basic components to executing a successful acquisition:
- Assembling the team - an internal team of finance, sales & marketing, and operations; an external team of experienced advisors such as lawyers, accountants, and investment bankers
- Initiating a target search - will an investment banker find & evaluate targets or will flow be generated internally through screening, networking and industry contacts?
- Developing a plan - draft a plan that includes objectives, relevant industry trends, criteria for evaluating target companies, and a timetable for completion
- Pricing the deal - not only understanding the financials of a business you are looking to acquire, but also looking at the culture of the company and how it may, or may not, work with your own culture
- Financing the acquisition - determining factors include the size & complexity of the transaction, the buyer's cash position, the terms of the purchase price, and market conditions
