July 7, 2014

Is your company ready to be acquired?

As we have mentioned throughout several posts on this blog, sometimes the driving reason behind an acquisition is for talent. When a smaller company has created a skilled team that could fill the needs of a larger business, that company might have strong acquisition potential. 

In a recent blog post on his website, product designer Keenan Cummings discusses the acquisition process. Cummings notes that companies are making talent acquisitions on an increasingly frequent basis. Acquiring a company for its skilled employees is a way for businesses to get the team they are looking for in one fell swoop, instead of having to spend time and money recruiting individuals. 

For companies that find themselves in the position of being approached with a possible acquisition deal, the decision can be difficult and requires a great deal of careful consideration. As Cummings notes, a company makes a significant investment in their vision, and turning it over to another owner is a big risk. 

There is more that goes into a deal than the details about money and shareholder values. Going through with the deal means making a big change.

"What really happens in an acquisition is individual, personal, and mostly below the surface. It starts with all the excitement and speculation you would expect, but then that goes away and you are left with a rewarding but complex mix of emotions and expectations, and those carry on long after," writes Cummings. 

What does this mean for businesses faced with an opportunity? Putting your business in the hands of another company typically means that it will be changed in some ways, and you should be prepared to handle the possibilities. An M&A advisor can provide you with the counsel to determine the optimal acquisition strategy for your business.