64 deals £1.780 Billion

Dow Schofield Watts llp


 

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PEARLS OF WISDOM

   

Acquisition secrets - success factors  

 

Financial acquisitions

  objectives are cost reduction, tight financial control, disposal of poor performing businesses.

 

 

 

success factors are: imposition of management, financial reporting requirements, and speed of change < 100 days.

   

Geographic acquisitions 

 

objective to expand the core business into new geographies.

 

 

   

 

success factors are: clear understanding of deal rationale, similarity of the target, and ability to “reward appropriate behaviour”.

 

 

Symbiotic acquisitions

 

objective to integrate skills and products within a portfolio or distribution channel.

 

 

 

success factors are: careful planning, new organisational structure, culture management, effective combinations.

 

 

Absorption acquisitions

 

objective to merge two similar businesses, but has greatest potential for problems as all aspects of target and acquirer are generally subject to review.

 

 

 

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.