You’ve negotiated a great deal to acquire a company. The price is right, due diligence didn’t turn up any critical issues, the seller is happy, and you are excited. What could go wrong?
Industry studies agree that 50% or more of mergers and acquisitions fail to deliver the value sought by the acquirer. For small to mid-size companies, failure could not only endanger the investment in the acquisition, but could also put the ongoing business at risk.
Other than the terms of the deal itself, the most critical factor in the success of an acquisition is the quality of post-close integration. The Austin Dale Group provides experienced advice to clients who want to reduce the risk of acquisition failure.
How much integration should you do and when should you do it? How do you minimize the disruption to your business, the target’s business, and your clients’ businesses? Which company has the best systems and processes for each key business function? What will all of this cost and how does that impact the overall purchase price?
Austin Dale Group provides an experienced, objective viewpoint to company leaders to navigate these difficult challenges. We work with you to develop an Integration Roadmap during the due diligence process, allowing you to set realistic expectations for cost and timelines and identify risks for disruption in ongoing business. This roadmap helps inform the acquisition negotiation, calibrate the purchase price with the path to payback on your investment, and optimize the value of the combined entity.
You closed the deal. You own it now and there are so many things that need to happen simultaneously. Employees need to be informed. Customers. Partners. Should you send out a press release? What about the websites, checking accounts, employee benefits, insurance…the list goes on.
You need a plan, before you get to Day 1. The Austin Dale Group has been there before and knows the things that you need to worry about…so you don’t have to worry.
A lot happens in integration: product lines need to be synchronized, sales teams need to be aligned, employees need to be reassured and reorganized. Systems. Processes. All aspects of both businesses could be affected.
Do you have experienced people on your team who know how to do integration? Have they done it before and do they have enough free time available to think about all of this given their ongoing day jobs?
We have done it before and can help you avoid the potholes that can distract and delay your team from getting the benefits of the acquisition. Contact us to learn more.