A successful deal is a win for both parties and can be measured in a variety ways. Although every deal is unique however, there are a few key qualities that every winning partnership should have in common.
Prepare Thoroughly
Before you sit at the table of negotiations it is important to prepare thoroughly. This includes studying the market landscape and identifying synergies that could be a possibility. Understanding your counterparts’ goals, priorities, and motivations is crucial. Being aware of the other side’s perspective will give you leverage and help ensure that your deal is successful.
Be prepared for unexpected events
Deal-making is an unpredictable process, and unexpected changes could cause problems. It is important that everyone is prepared for the unexpected, whether due to a sudden discovery of a regulatory issue, a suit or other unforeseen circumstance. This can include having a backup plan or an exit strategy should the plan fails.
Identify Key People
Buyers should focus on keeping key team members from a target company following a sale. It is common for acquirers to not keep top talent in place, which can slow growth post-acquisition and decrease value. It is vital to comprehend the culture and values to ensure that it is compatible with the acquired company’s. This will ensure that the acquired company will continue to grow its revenues, even after a transaction. It is not uncommon for an acquisition business to VDR: accelerating decision-making in business environments see a dip in revenue after a deal due to the fact that the team acquired is focused on achieving synergies as well as the revenue targets that were set prior the acquisition.