November 18, 2015

Will your acquisition pass the toothbrush test? [Video]

When approaching any potential acquisition, Google Chief Executive Larry Page explains that it must pass what he calls the toothbrush test. This test asks: will I use this at least once or twice a day and will it make my life better? This unique view is useful when determining whether or not the profitability gained through investing in a company will outweigh the costs associated through acquiring it.

The first part of the test is important in the decision making process because it helps tech companies determine whether or not buying a company will be effective in the long-term. 

The second portion deals with whether or not this acquisition will add to the success of the company. Will this acquisition ultimately make your company better off?

With the help of an experienced M&A advisor, you can navigate the M&A process with ease.