EFFECTIVE USE OF TALENT
The challenge for the CEO of a company that wants to grow through acquisition is that the CEO is also charged with running the company. This presents a conflict even in larger businesses that have a dedicated ‘corporate development’ or an ‘M&A’ function. Too often, an ad hoc acquisition team is recruited from daily jobs and, as a result, neither the acquisition search nor the daily job is done as well as it must be. No wonder that acquisitions take too long and rarely deliver the value expected.
Compounding this is the attitude that “our industry is small” or “I know all the players”, but the truth is that until you take an objective and broad based look at the opportunities, you really don’t know what will fit the best. An external perspective is of great value because an expert doesn’t bring a lot of baggage in the form of preconceptions about what might add real value.
Consider using a ‘retained search’ firm for finding and researching acquisition targets. An extensive and well-defined search will allow you and the team to focus on the highest and best use of your time – evaluating the best candidates for acquisition. After all, the objective is to improve the success rate of your M&A transactions.
Cliff Allen, Packard Acquisitions
Researching and Profiling
Privately Held Companies for Acquisition
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