13 Key Questions to Ask for Growth by Acquisition

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Mergers and acquisitions often play a key role in a company's ongoing growth-planning process. It may be more efficient to achieve the objectives by buying assets and resources needed for growth. Here are 13 key questions about your business for growth by acquisition:


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A growing company considering an acquisition should always begin with an acquisition plan that identifies the specific objectives of the transaction and the criteria to be applied in analysing a potential target company.

But first you need to make sure that growth by acquisition makes sense. Here are some questions to go through for your business. 

13 Key Questions to Ask When Considering Why Grow by Acquisition

1. Are you convinced that growth via acquisition makes sense compared to other forms of growth strategies (internal expansion, joint ventures, franchising, licensing)

2. Are you really enhancing our shareholder value and competitive position?

3. What are the synergies and efficiency effect with regard to production and manufacturing, research and development, management or marketing and distribution?

4. Does the deal provide growth and opportunities for your staff and retain talent?

5. Does it add to your income streams?

6. Does it achieve certain production and distribution economies of scale ?

7. Does it strengthen key business areas, such as research and development or marketing?

8. Does it protect trademarks and gain recognition in the marketplace

9. Are the products and services superior?

10. Does it penetrate new geographic target markets?

11. With your companies skill set, can you grow the target company to the next stage?

12. Does it achieve greater economies of scale in production, distribution, sales?

13. Does it help acquiring certain patents, copyrights, trade secrets or other intangible assets which otherwise would not be available to you?

If you are getting mostly yes answers then it could make good sense to grow by acquisition and you should start to put your plan together and decide on criteria for acquiring other businesses. 

Recommended reading: 7 Common Growth Traps To Avoid

Over to you now. Do you have any more tips for growth by acquisition? Share them with us in the comments below. 

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Thursday, 16 August 2018
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