Let's Buy a Company: How to Accelerate Growth Through Acquisitions by H. Lee Rust

Author:H. Lee Rust [Rust, H. Lee]
Language: eng
Format: mobi
Publisher: Career Press - A
Published: 2006-01-30T05:00:00+00:00

9. Expect the unexpected. No matter how much you study an acquisition, no matter how thoroughly you understand the operations you’re buying, on the day after the closing—when you go into your new facility, sit behind your new desk, and open the top right-hand drawer—an enormous snake will jump out and bite you. I don’t care how thoroughly you conduct your due diligence investigations, that snake is there. It can’t be found before the closing, and it will bite you. Expect it.

10. The morning after. Most acquisitions that fail (that is, don’t meet the short-term objectives of either the buyer or the seller) don’t do so because the price was too high, the acquired business wasn’t as presented, or market changes adversely impacted the operations after the closing. Most acquisitions fail due to poor (or no) transition planning. Once your acquisition terms are negotiated and the Letter of Intent is signed, turn the transaction over to the experts. Turn your attention to a written Transition Plan What needs to be done during the first 30 days, 90 days, and six months? Involve your management staff, as well as those in the target company, to formulate this plan. The plan then becomes theirs, and they will have a vested interested in seeing it (and the acquisition) succeed. Make sure you know exactly what should—and will—be done the morning after the closing.

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