Acquisition Cost Benefit Analysis & Risk

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Family business spends 4 years & 1M plus to make acquisition (75 candidates investigated, 40 site visits, 3 offers – no transaction completed (none of the candidates were a good fit)

Recently, a public company Packard worked with spent 10 years recovering from a poorly selected acquisition that created losses in the millions, lasting problems, & many bad feelings.

Family business spends 1M plus & 7 years reviewing 25 broker referrals & no transaction.  In this case, the president liked to travel & spent about a year at a time reviewing a single acquisition candidate.  Very expensive (but not as costly as buying a mistake).

It becomes much harder for the management team to begin another acquisition undertaking with the bad memory of a costly failure hanging over their head.

The cat that sat on a hot stove will never again sit on a hot stove (nor a cold one either).

Most M & A attorneys will testify that about half of all acquisitions do not get to closing.   Deloitte, Harvard, & Wharton prove that the vast majority of acquisitions don’t add value & over half destroy value.

Knowledge is power.  A team with a history of success in this field of endeavor has value beyond measure.

 Build a strong team & use proven methods & tools for the best results.

 Workshops/Coaching/Non-Brokered Search

Better Candidates = Better Transactions

Mike@packardgroup.com

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