There’s no denying that M&A is a viable method for businesses of all sizes around the globe to accelerate their growth. The process of acquiring a business is fraught with potential pitfalls that could cause businesses acquired to lose their value. Making sure you follow these four steps for a successful acquisition can help you avoid common mistakes and make your next acquisition https://dataroomplace.blog/document-management-unleashed-virtual-data-rooms-decoded/ a winning strategy for growth.

1. Plan your acquisitions.

One of the most common causes of failed acquisitions is poor planning. By developing an acquisition plan at the outset you can ensure that your company is maximizing value and is in line with the goals of your M&A strategy.

Typically, this involves creating an inventory of M&A companies to be considered and reducing that list with the use of search criteria. These factors may include industry sector valuation, deal value, market share and operational scale. Corporate development teams can utilize many sources to find M&A potential companies, which include online sources such as DealRoom and LinkedIn; trade journals and industry associations, as well as databases of investment firms and private equity firms.

2. Establish a team to lead the M&A process.

It is vital that management teams set up the team under the direction of an executive with seniority who can oversee the M&A from start to finish. This is essential to ensure that the strategic intent of the acquisition is not lost along the way and that the process of integration is smooth and efficient. It is also vital to have human capital experts on the M&A team to estimate the cost of benefits and compensation, as well as quantify the actuarial value of pensions and other financial obligations.