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:
- Identify the strategic rationale for the acquisitions
- Identify how an acquired business will be integrated, the key factors in creating value and the key risks to be identified and managed
- Comprehensively map the market to identify potential acquisition targets
- Systematically approach the targets to determine interest
- Develop an ‘acquisition pipeline’ to progressively close deals at the desired rate
- 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.