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.
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.
- Are you convinced that growth via acquisition makes sense compared to other forms of growth strategies (internal expansion, joint ventures, franchising, licensing)
- Are you really enhancing our shareholder value and competitive position?
- What are the synergies and efficiency effect with regard to production and manufacturing, research and development, management or marketing and distribution?
- Does the deal provide growth and opportunities for your staff and retain talent?
- Does it add to your income streams?
- Does it achieve certain production and distribution economies of scale ?
- Does it strengthen key business areas, such as research and development or marketing?
- Does it protect trademarks and gain recognition in the marketplace
- Are the products and services superior?
- Does it penetrate new geographic target markets?
- With your companies skill set , can you grow the target company to the next stage
- Does it achieve greater economies of scale in production, distribution, sales?
- Does it help acquiring certain patents, copyrights, trade secrets or other intangible assets which otherwise would not be available to you?