What does it take to make an acquisition successful?
One way to test if spaghetti is done is to throw it against the wall and see if it sticks. This is not the right mindset to take when entering into technology mergers or acquisitions. A recent VentureBeat contribution piece by Jay Simons, president of a software company, highlighted three key points for organizations to keep in mind:
- Believe in the same thing.
- Celebrate both the union and the unique.
- Get out of the way.
For starters, it is critical that each company involved in the M&A process has complementary goals, ideals and even a similar customer base. This will help ensure that middle ground can be found and the right opportunity can be created to benefit both sides.
The union itself is something to be celebrated, but so are the unique characteristics of each business. Company acquisitions happen because one company has something different, and can help another firm leap ahead of the competition. Each aspect is special and plays an important part in the acquisition finding long-term success.
The last suggestion by Simons can be tricky, as many entrepreneurs want to see their business all the way through to success. However, it is important to understand that roles will change, but it does not necessarily mean the complete end to the company – it will just be living and thriving through another organization. This could be an ideal opportunity, though, for business leaders to work on other projects and create something else that could benefit other institutions and customers in the future.
Simons concluded that the company he has today is a great mixture of talent and technology.
"We couldn't come this far without them, and we'll need others along the way to pursue a mission as bold and ambitious as helping software teams in every company advance humanity through the software they create," Simons wrote.