Many of us have been through the unsatisfying experience of a the management team determined to grow through acquisition without adequate definition. We travel, research, investigate, many opportunities without any return.
If something turns up that more or less fits, an offer is made (after all, this has been a major effort and we need to show results). With luck, a strong management team, and sound integration strategy, the deal will go together.
If the deal was not a fit, it becomes evident (but too late). Almost no amount of strong management and sound integration can successfully mesh a bad fit integration over an extended period (hence the negative statistics regarding acquisitions).
There are just too many new problems to solve.
This is the piece that gives us stories to tell about other peoples mistakes and catastrophes.
The failure of a completed transaction due to the poor choice in targeting candidates is very costly. Losses are considerable in money and human capital. People and business suffer.
Putting a robust criteria model at the center of the acquisition process takes risk out of the acquisition process at the beginning.
Searching with definition guarantees a specific (more measurable/qualified) target acquisition.
Share your experiences and ideas about this topic;