When Conducting An Acquisition Search, Be Both Systematic and Opportunistic

It occurs to me that when you search for an acquisition opportunity, it is very important to be both thoughtful and systematic.

After a great deal of thought, determine what type of business you seek to acquire and why acquiring such a business makes sense for you.  As part of this process, I recommend creating an acquisition strategy that includes detailed criteria.

Armed with the acquisition criteria, be systematic and thorough in your company acquisition search. Access relevant databases and cast your nets widely to be sure that you can find all the prospective acquisition targets that match your acquisition criteria.

I have worked with clients who have used advertisements, direct mail, telephone calls, and various other methods for approaching prospective acquisition targets.

Be opportunistic if a desirable acquisition opportunity suddenly becomes available to you.

While being systematic and thorough, also be opportunistic in your search. In other words, be open to the possibility that you might identify acquisition targets without looking for them. You might stumble onto a legitimate acquisition target through networking, speaking with your attorney and other professional advisors, or in other unanticipated ways.

I have put many buyers and sellers together over the years and in the process created various profitable opportunities for my clients. For example, a client of mine actively sought an acquisition opportunity for years with no success. Based solely on my informal networking, he stumbled onto an acquisition opportunity, which reportedly was a home run for my client and their investors.

The more serious your process the greater the likelihood of success you have in your acquisition search. That is a sure thing.

Set yourself up for success with a serious process.

Be open to the possibility that the best acquisition opportunity might come in a completely unexpected manner.