The limits of organic growth
An acquisition is a method of strategic growth. As such, its reasonable to factor organic growth – the ‘steady as she goes’ approach into the discussion, and assess best-case scenarios for growth. Would selling more …
Assessing viability of multiple options
When you’re faced with the situation of having too many options, the best way to plot the path forward is to assess the net present value (NPV) of the cash generated of each option under …
Can growth be achieved in the target company?
Because the whole point of an acquisition is the accretive growth, the ability of the target company to not just maintain, but grow, will be a critical factor in the final go/no-go decision. The Sales …
Turnaround planning
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 …
How motivated is the team?
When you’re considering an acquisition, the quality, motivation, skill, ability, and adaptability of the team at the target company will be a critical dimension of the go-forward decision. A motivated team is a high-performing team. …
Anticipating post-purchase turnover
Before entering an acquisition, it’s wise to get a grip on the potential turnover-related costs that might await when the target company is finally assimilated into the new corporate structure. This worksheet will give you …