Prior to the go/no-go decision, its prudent to acknowledge that the target company will require some ‘turning around’. – define that as you will.
Of course, the unique particulars of the target business will govern the approach – but in general, the activity needs to be disciplined: number focused, and people-flavoured. The turned-around business either stands on its own, or it doesn’t (keeping personalities out it at this early stage can be most helpful).
Tactically, the approach will follow the 4 step process in the worksheet below – use this tool for scenario planning now, to avoid making a decision you’ll regret later.
The process involves:
- getting clarity on your current situation (step 1),
- defining the to-be business (step 2),
- reflecting-on, and prioritizing the key activities to be achieved (step 3),
- and assessing the do-ability of turning around performance in the key dimensions identified (step 4).
- You may be interested in: Planning an Acquisition: Getting on the Same Page