An acquisition can be an effective way to accelerate market growth. The right acquisition can provide a number of strategic advantages in addition to increased revenue and profit streams:
- Immediate market presence
- Industry knowledge
- Customer intimacy
- Technical know how
- Distributor and channel access
- Specialized expertise
- Product design
- Manufacturing or delivery capabilities
- Potential economies of scale and efficiencies of combined operations
However, acquisitions also introduce potential for business risk. If the match is ill conceived or the acquisition is executed badly, an acquisition will destroy rather than create value.
The first step to a successful acquisition is to ensure that the expected outcome is actually achievable. Assume intuitive “synergy” is not good enough. The business objectives should be quantified and the acquisition target analyzed to the extent necessary to determine if the value will actually be received. Emotions and intuition should be subordinated to financial analysis and market due diligence.
At Geo Strategy Partners, we approach each acquisition project with a disciplined process beginning with a comprehensive download from our client on purpose and objectives. We then conduct a comprehensive market and competitive analysis; our global research capabilities ensure that we identify the full list of potential acquisition candidates. Our strategy and business analysis capabilities allow us to vet potential targets down to a short list of the most viable and valuable in terms of strategic fit. Our valuating and negotiating expertise ensures clients make optimal decisions and achieve the best value. Our ability to facilitate post-acquisition integration ensures that value paid for is not destroyed in a clash of corporate cultures. Geo Strategy Partners acquisitions can help you get to… where you need to be.
