The past years have been great for mergers and acquisitions. Last year trillions of dollars
worth acquisitions took place and this is expected to continue as far as the situation of the
market is concerned. The companies have been continuously been struggling to reach the
next stage. This is a symptom of glut in seed funding in the past years.
Whatever you do, if you want to be prepared for acquisitions, you need to know that it takes
about 6 months to complete an acquisition. When you start, there will be done difficult steps
to take. Here are the 5 ways to prepare for the season if acquisitions :
1. Let key people know
The key people in your company must be intimated about the acquisition. It must not be like
they get to know about it out of the blue. It must not come as a surprise for them. They must
be ready for it wholeheartedly. There will be time when you need their signatures, therefore
building consensus is very important.
2. Forge relationships early
The best scenario is when you have an investor or a good buyer but you need at least 2
parties to have a good outcome. You should have someone to choose from. All the leverage
shifts on the buyers in this scenario. You must be able to forge relationships early and find
strategic investors and interested buyers. There are times when you have to walk off from
one good option because of certain problems. That is when other options come handy.
3. Adapt to a new vision
While talking to potential buyers, see what their vision is and whether or not does your
company fit into it. If the buyer has a new and better vision, you must be ready to adapt to it
and take the company forward.
4. Prepare to shift your day job
Going for an acquisition, it will become your day job. You have to be into it to complete a
successful acquisition. You have to reconcile with this fact. You will talk to many people and
a majority of them won’t result in anything and you will have to be on terms with it.
5. Sort out your finances
You have to be realistic about what you have and what you need. Give yourself time to
administer the financial position of the company. The company must be in a position of
reasonable strength. Instability can instill panic in the organisation. So be prepared for
everything.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST software, GST Return Filing, GST Registration, Section 8 company registration, Nidhi company registration, IEC registration.
worth acquisitions took place and this is expected to continue as far as the situation of the
market is concerned. The companies have been continuously been struggling to reach the
next stage. This is a symptom of glut in seed funding in the past years.
Whatever you do, if you want to be prepared for acquisitions, you need to know that it takes
about 6 months to complete an acquisition. When you start, there will be done difficult steps
to take. Here are the 5 ways to prepare for the season if acquisitions :
1. Let key people know
The key people in your company must be intimated about the acquisition. It must not be like
they get to know about it out of the blue. It must not come as a surprise for them. They must
be ready for it wholeheartedly. There will be time when you need their signatures, therefore
building consensus is very important.
2. Forge relationships early
The best scenario is when you have an investor or a good buyer but you need at least 2
parties to have a good outcome. You should have someone to choose from. All the leverage
shifts on the buyers in this scenario. You must be able to forge relationships early and find
strategic investors and interested buyers. There are times when you have to walk off from
one good option because of certain problems. That is when other options come handy.
3. Adapt to a new vision
While talking to potential buyers, see what their vision is and whether or not does your
company fit into it. If the buyer has a new and better vision, you must be ready to adapt to it
and take the company forward.
4. Prepare to shift your day job
Going for an acquisition, it will become your day job. You have to be into it to complete a
successful acquisition. You have to reconcile with this fact. You will talk to many people and
a majority of them won’t result in anything and you will have to be on terms with it.
5. Sort out your finances
You have to be realistic about what you have and what you need. Give yourself time to
administer the financial position of the company. The company must be in a position of
reasonable strength. Instability can instill panic in the organisation. So be prepared for
everything.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST software, GST Return Filing, GST Registration, Section 8 company registration, Nidhi company registration, IEC registration.
Comments
Post a Comment