Maximizing a deal’s potential for success: Part 1 [Video]
Over the years, industry analysts have speculated as to the precise figures regarding the success and failure rates for acquisitions. Some researchers find that as many as half of all acquisitions fail to live up to financial expectations. To maximize your company’s potential for a successful acquisition, you and all parties involved must create and strictly abide by a strategic business plan.
Consolidation is key to removing industry excess. One way to ensure the ultimate profitability of your deal is to align yourself with a buyer that can solidify your place in your industry, not just create excess capacity. Before entering into a deal, see how it will affect the marketplace as a whole and in the long run.
Another way to guarantee success is to provide an accelerated or expanded market for you and your buyer’s products or services. Sometimes your services or products may have a difficult time reaching your key market demographic. If all parties involved can expand their reach, your chances of success increase significantly.
Thanks for watching! Come back later for the second part in this series.