August 13, 2013

Growing your company through a technology acquisition

Going through a technology acquisition is an important step for any company. Whether a firm is buying yours, or if your business is the one doing the purchasing, it is an opportunity for growth. Organizations choose this option for numerous reasons, including wanting to expand into new markets, gain advanced technology, increase market share or perhaps find talented personnel.

Regardless of the reasoning, it is important to keep some key factors in mind to ensure that the M&A activity runs as smoothly as possible.

A contribution piece in Inc. Magazine highlighted some tips that businesses should keep in mind before they even enter into a technology merger or acquisition. While the article was geared toward companies acquiring another, the advice can benefit organizations on either side of the bargaining table.

"You'll want to draw upon the skill set of internal and external experts before, during and after the acquisition," the article said. "The earlier you get the right people involved, the more likely you'll end up with a deal that works."

Specifically, the news source explained that partnering with a responsible executive, IT expert and HR expert throughout the entire process would be helpful. Having the guidance of investment banking firms and a lawyer will also be beneficial.

There are often details that a business might not be aware of, which is why experts like that will be necessary. For example, negotiating the terms is often more complicated than originally thought. According to Inc., discussing the "soft issues," such as retaining staff, is important. Following an acquisition, no company wants to experience an exodus of talent, which is why it's crucial to be as clear as possible with what the next step will be. 

With the right partners, though, the entire technology acquisition process will run smoothly.