Mergers and acquisitions are common in business, reshaping industry and creating new alliances. Real-world examples of successful business deals can provide valuable insights into strategies, motivations and outcomes.
If it’s a service, product, service, or contract any negotiation needs a certain degree of compromise. A successful negotiation will leave both parties satisfied that they have reached a compromise that they can accept.
Define the value you can provide a client to ensure that your deals are successful. It will be easier to negotiate if you clearly communicate the short-term and the long-term benefits.
The best place to start when looking at potential target companies is their market presence. A company that has a large customer base and an established brand can be a valuable asset in the deal process. This will also give the company credibility and trust which can be leveraged to create future growth opportunities.
It is crucial to take into consideration the management team’s history and experience when evaluating a potential target. A well-trained management team will be able to direct the integration process and continue to drive growth after the deal is completed. This will ultimately prove to be more important than synergies which can be underestimated in acquisitions. In fact, a dip in revenue following an acquisition typically is due to the failure to safeguard the momentum of the acquired business.