• The high failure rate of acquisitions can be mitigated
considerably by dealing with the strategic risks that
are present at every stage of the acquisition process.
• It is best to start with a well-developed business
strategy, a clear idea of the place of mergers and
acquisitions (M&A) in this strategy, and an acquisition
target that furthers strategic aims.
• Before embarking on negotiations, acquirers should
avoid the risk of overpaying by setting a price above
which they will not go.
• Before negotiating the final details, due diligence
should be used as a final confirmation of the strategy
and the target’s fit.
• The most important thing is to make sure that the post
acquisition plan is put together early and in as much
detail as possible. Acquirers need to add value, and
they can only do this if they are clearly focused on the
sources of extra value and how to realize them right
from the very start.
