Breaking It Down: The First of the Ten Commandments of Business Acquisitions
Our Ten Commandments of Business Acquisitions has been so popular that we have decided to break it down. To briefly discuss each of the Ten Commandments and its import and impact.
The first commandment: "Understand your goals for the acquisition."
Begin with the end in mind, and at all times consider your own business objectives and the possible acquisition from the standpoint of how it advances those business objectives.
Frankly, if this particular acquisition target is important/ essential in order for you to achieve your business objectives, approach the acquisition that way.Be sure the acquisition fits and that the acquisition prospect, with whatever price tag, and with whatever strengths and weaknesses it may have, will mesh with your overall goals and plans.
As you work to reach an agreement with the seller and, thereafter, to perform your acquisition related due diligence and then to negotiate and document the acquisition itself, just be sure that none of what you learn about the acquisition prospect or that you have to agree to in the course of negotiating and documenting the acquisition is such as to undermine your overarching business objectives.
If the fit is good enough, after all, you can afford to pay a bit more than you might like and even undertake a few additional risks and still be making progress towards achieving your overall business objectives.