A successful deal is one that benefits both parties and can be monitored by a variety of ways. Each deal is unique, but there are certain traits that every successful partnership should possess.
Prepare thoroughly
Before you sit down at the negotiation table it is important to be prepared. This includes analyzing the market landscape and identifying synergies that could be a possibility. Understanding your counterparts’ goals and priorities is also crucial. Understanding the other side’s perspective can give you the advantage and ensure that your deal will be a success.
Be prepared for the unexpected
Deal making can be unpredictable and unexpected twists and turns in the process can often cause a rift in plans. It doesn’t matter if it’s due to the unexpected discovery of a regulatory issue the occurrence of a lawsuit or other unexpected circumstance, it is important for all parties to be prepared for the unexpected. This could include having backup plans and an exit strategy in place should the plan fail to go through.
Identify key people
Buyers should concentrate on retaining key team members from the company they are considering buying. Acquirers often fail to retain the top talent, which can erode value and homepage derail growth after an acquisition. Understanding the culture and values of the target company is essential to ensuring that the acquired company’s values are compatible with the acquiring firm’s. This will ensure that the acquired company will continue to grow its revenue after the acquisition. It is not uncommon for an acquiring company to see a drop in its revenue following an acquisition since the team that was acquired is focused on achieving synergies and revenue goals that were set prior the acquisition.