Growing After the Acquisition: Simple Steps to Maximize the Value of a Target Acquisition
Perhaps one of the greatest benefits of performing a strategic acquisition is the chance to dive into the business and find areas for optimization and improvement. Whether is marketing, sales optimization, finance & accounting savings, operations or simply cleaning out needless waste, every business can be exploited and optimized. Producing more more after an acquisition has taken place is the goal of every synergy advocate.–especially if the seller has not take the time to extract all value prior to the transition. As part of the goal to be as efficient as possible when doing M&A deals, here are a few steps to maximize returns after the deal has closed.
- Adhere to the core competency of where the business adds value to the market. Continuously improve on that value-add, but keep abreast of potential horizontal and vertical sectors where value-added improvement can also take place.
- Keep a dynamic perspective on your change relative to others in the market. This will help your business to adapt faster and more efficiently than the competition. Keep experimenting to see what works.
- New management must use and treat all business cash as if it were their own. This does one of my things, but perhaps most important, it keeps new management aligned with new investors.
- Thinking outside the traditional box will help the business to meet another stage of growth. This often occurs through creative solutions, partnerships or further breakthroughs in technology or understanding.
- Think like General Electric: be number one or number two in your space, or get out of it.
- Keep cash flow and profitability on top-of-mind. Concurrently, keep a keen eye on your business model, recognizing that cash flow stems from internal business decisions based on your model.
- Don’t be afraid to hang out the dirty laundry. By sharing current and potentially unforeseen issues which may arise, more stakeholders will be able to tackle the problem together. Sweeping things under the rug never works and is just bad business in general.
- Stay 100% focused on growth and prioritize accordingly. When you’re done focusing on growth, then focus some more.
- Harness 100% of employee power, creativity and overall expertise by creating a winning, dynamic culture and atmosphere.
- Be realistic, set goals, work hard, work smart, be creative and most importantly have fun–because growth is fun.
Never is the business officially “done.” There is nothing so turnkey as to walk away from the responsibility of effectively managing the assets of the acquired business. Once the deal is done, the work really begins. For those performing Phoenix mergers and acquisitions in need of advisory services, please contact us.
Nate Nead is a licensed investment banker and Principal at Deal Capital Partners, LLC, a middle-marketing M&A and capital advisory firm. Nate works with corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. He holds Series 79, 82 & 63 FINRA licenses and has facilitated numerous successful engagements across various verticals. Four Points Capital Partners, LLC a member of FINRA and SIPC. Nate resides in Seattle, Washington. Check the background of this Broker-Dealer and its registered investment professionals on FINRA's BrokerCheck.
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Nate Nead
Nate Nead is a licensed investment banker and Principal at Deal Capital Partners, LLC, a middle-marketing M&A and capital advisory firm. Nate works with corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. He holds Series 79, 82 & 63 FINRA licenses and has facilitated numerous successful engagements across various verticals. Four Points Capital Partners, LLC a member of FINRA and SIPC. Nate resides in Seattle, Washington. Check the background of this investment professional on FINRA's BrokerCheck.