Playing At Acquisition

alligatorBroker driven and opportunistic deals are appealing and the excitement of the chase builds quickly.  Some of the team members have done a few acquisitions, we are smart, successful, and experts in our field, why wouldn’t we be winners at the game of acquisition?

I like making brick paths and walls and feel a great sense of accomplishment when I have completed some small structure with bricks in a home project.

But when I watch a real brick layer complete a commercial project, with what looks like a thousand precisely placed bricks in one afternoon, I am aware of the skill and practice being demonstrated. I do not compete. I’m pretty sure acquisitions involve more complexities and pitfalls than bricklaying.

50% of acquisitions don’t make it to the closing table, and according to Wharton, Harvard, and Deloitte, 60% of acquisitions destroy value. and over 80% don’t add a sustainable competitive edge.

Then there are the giant losses incurred by completing seriously flawed transactions.  A recent client was still paying for a bad acquisition ten years later (losses exceeded the purchase price).

It’s allot more fun to complete a deal that took a little longer and see it add value than it is to spend years undoing or making up for an imperfect transaction.

Knowledge is power – experience our short free webinar.  mike@packardgroup.com

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