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Acquisition
secrets - success factors
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Financial
acquisitions
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objectives
are cost reduction, tight financial control, disposal of poor performing
businesses. |
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success
factors are: imposition
of management, financial reporting requirements, and speed of change <
100 days.
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Geographic
acquisitions
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objective
to expand the core business into new geographies.
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success
factors are: clear understanding of deal rationale, similarity of the
target, and ability to “reward appropriate behaviour”.
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Symbiotic
acquisitions |
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objective
to integrate skills and products within a portfolio or distribution
channel.
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success
factors are: careful planning, new organisational structure, culture
management, effective combinations.
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Absorption
acquisitions |
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objective
to merge two similar businesses, but has greatest potential for problems
as all aspects of target and acquirer are generally subject to review.
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success
factors are: financial objectives, understanding similarities, appointment of
integration team, integration of plan, choice of management, speed, swift
implementation of new organisational and reporting structure,
communication.
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