16 Oct 10 Common M&A Mistakes to Avoid (#9 of 10)
9. Falling in love with the deal
It’s not unusual for an owner or executive to fall in love with the opportunity to close a deal with a target company and not see the red flags. They might be focused on a short term boost in revenue, or the attention that the deal will bring to their company. If they are buying a tough competitor their ego may interfere with more cautious thinking. Acquisitions can be expensive and risky so it’s important to remained disciplined and stick with a rational and analytical process.
Take home message: set the strategy first, and then analyze the target to make sure it’s a good fit.