iKadre acquisition strategies are comprehensive, detailed plans to accomplish the acquisition transaction in a way that helps your organization grow.
While much of the strategy development process relies on exact calculations and modeling, there is also an essential element of communication, human contact being a part that companies should not neglect. Every acquisition is different, each transaction involves unique aspects, but some steps are common to all acquisition strategies:
- The evaluation of the financial solutions available for making an acquisition – knowing exactly how much can be allocated to the project is essential for success;
- Establishing the criteria and searching for suitable candidates – knowing what you want to buy is also essential. Search for potential candidates based on geographical location, business area, expansion, potential, and level of competitiveness;
- Contacting potential targets – the next phase should be to establish contact with the companies that seem suitable for your means and objectives;
- Negotiations – after finding companies interested in going ahead with the transaction, a letter of intent is issued, and a usually lengthy process of negotiating the terms of the deal starts;
- Due diligence – in this phase, the correctness of the valuation documents is verified, and the assets, liabilities, contracts, and other relevant figures of the company to be acquired are also reviewed;
- The contract – in the final phase, the contract that includes all the terms and conditions of the agreement is drafted and signed by the parties.