Acquisitions

 

Acquisition can be a way for a business to accelerate both growth and value creation. Again, XSallarate applies a very disciplined approach to acquisitions. In the case of ongoing acquisition programs, the approach is to:

  1. Identify the strategic rationale for the acquisitions
  2. Identify how an acquired business will be integrated, the key factors in creating value and the key risks to be identified and managed
  3. Comprehensively map the market to identify potential acquisition targets
  4. Systematically approach the targets to determine interest
  5. Develop an ‘acquisition pipeline’ to progressively close deals at the desired rate
  6. Ensure that effective integration plans are developed and rigorously implemented

 

Keys to successful acquisitions include:

  • Having a pipeline that is sufficiently broad which reduces pressure to close a particular deal, improves the bargaining position and allows ‘time’ to be a key negotiating tool
  • Undertaking a comprehensive mapping of the targets to ensure potential target businesses are not missed
  • Understanding the ‘non financial’ aspects of a deal that are often the major drivers of getting a deal done
  • Doing the groundwork to create an ability to move quickly enough when there is a deal to be done…agility wins deals
  • Carefully considering corporate culture, the impact and drivers for key individuals and culture fit
  • Thorough due diligence
  • Getting genuine buy-in from the core team
  • Ensuring acquired businesses are integrated into a well run business units
  • Rigourous integration planning and execution

 

XSallarate’s team have overseen more than 40 acquisitions and can assist in various ways – either as a strategic guide, assisting in-house teams or running the entire process.