ONE – Is there a business strategy behind the acquisition? Every acquisition does not have to be a part of a pre-existing strategy. Realistically, most acquisitions are opportunistic, but there does have to be a strategy – a reason for the acquisition.
TWO – Is the acquisition target the right target? Determining a target is the right fit involves–identifying potential targets, “qualifying” them and completing a due diligence process to confirm that a target is a good fit.
THREE – Is the deal right ? The deal includes the price, the terms and the transaction structure. The right deal is one one that fits the needs of both the buyer and the seller – the proverbial win-win.
FOUR – Is there an effective integration plan – and will it actually be executed? In the excitement of closing a deal it is very common to lose sight of the steps that need to be executed after the deal is done. What happens after a deal closes is usually more important that what happens before it closes in determining if an acquisition will be successful.
The Principium Group is an advisory firm providing services related to mergers & acquisitions and exit planning to lawn, landscape and other green industry businesses.