Research shows that acquisitions are as likely to destroy shareholder value as to enhance it. We have researched this phenomena and believe the following are cruicial to making a success of your purchase.
- Firstly, don’t use advisers who try to negotiate a success fee, overpaying is the single greatest factor in destroying value, and advisers who stand to earn a success fee will never tell you that you are overpaying. On Acquisition work we will offer you a simple contract, a realistic budget and a time based fee.
- Secondly, we think the structure of the deal is very important, with at least some correlation between the final amount paid and the success or otherwise of the acquisition, and a related element of deferred consideration. We will advise on the structure of the deal.
- Thirdly, we think insufficient thought and resources are often put into the post acquisition processes, the handover from the previous owners, merging systems and cultures, exploiting synergies, and quickly disposing of problems. The acquisition team will have an in depth knowledge of the new business, but almost always are laid off the day after the deal is done. We are available to help post acquisition.
And why not download The British Business Brokers Guide to Successfully Buying a Business.