Mergers and acquisitions are frequent in business, reshaping industry and creating new alliances. Actual examples of successful business deals can provide valuable insights into the strategies, motivations and results.
No matter what it is, whether it’s a purchase, service, or contract, every negotiation requires some degree of compromise. A successful negotiation leaves the parties with a satisfied agreement they can live by.
To ensure that your deals are as successful as you can make sure you clearly define the value of what you can provide to a customer. It will be easier to negotiate if you clearly explain the short-term as well as the long-term benefits.
When evaluating potential targets, it is important to think about their market presence. A company with an existing customer base as well as a strong brand recognition will prove to be a strong asset in the process of making a deal. This will also provide the company with credibility and confidence that can be leveraged to create future growth opportunities.
When evaluating potential targets it is essential to consider the management team and their experience in achieving success. A well-run management team will be in a position to manage the integration and drive growth long after the deal is completed. This will eventually prove to be more important than synergies which can be underestimated in acquisitions. A decrease in revenue following an acquisition is often due to the inability to keep momentum in the acquired business.